
Presale projects and new houses in northern Taiwan reached NT$1.1 trillion (U.S.$34.84 billion) last year, marking a 12.1% decline to a four-year low, according to a report from Chinese-language My Housing Monthly (住展雜誌). Developers adopted a conservative business approach in response to unfavourable policy measures, including interest rate hikes, a ban on transfers of presale project purchase contracts, credit controls, and other restrictive terms. Economic uncertainty and a global economic slowdown also contributed to this conservative stance, along with political uncertainty related to the recently concluded presidential election.
Despite the overall decline, Taipei and Yilan County stood out with annual increases of 8.7% and 36%, reaching NT$290.18 billion and NT$27.97 billion, respectively. However, Keelung experienced the steepest decline of 52.9%. Taoyuan saw presale projects and new houses slump by 27.2%, New Taipei City dropped by 15.3%, and Hsinchu city and county decreased by 8.4%.
Developers faced challenges such as a ban on transfers of presale project purchase contracts, credit controls, and other restrictive measures, prompting a more cautious approach. The central bank’s interest rate hikes, a global economic slowdown affecting Taiwan’s exports, and political uncertainty surrounding the presidential election further contributed to the subdued market sentiment.
Despite these challenges, Taipei demonstrated modest growth, attributed to resilient house prices, especially in high-profile districts such as Daan, Songshan, and Zhongshan. New Taipei City also showed limited correction as interest in living in the area increased.
Looking ahead, industry experts suggest that the market might stabilize in the coming year. With the presidential election concluded, a potentially business-friendly incoming administration, and the central bank maintaining interest rates unchanged since June of the previous year, there is optimism for a smoother market trajectory in 2024. Additionally, previously cautious developers might become more active, encouraged by continued interest subsidies for first-home purchases.
In summary, the northern Taiwan property market faced headwinds in 2023, but certain regions, such as Taipei and Yilan County, demonstrated resilience amidst challenging conditions. As economic and political uncertainties subside, the market is expected to stabilize, and developers may become more proactive in response to favourable policy measures.