Housing Market Controls Lead to Pre-Sale Recovery; Association: Rising Costs Make Price Drops Difficult
NQ Score
88/100
AI Summary (NQ-processed)
The Taipei Real Estate Agents Association announced that after the Central Bank's housing market controls in September 2024, initial impacts were minimal, but stricter bank lending eventually affected the pre-sale housing market. However, recent easing of restrictions and increased visitor numbers show signs of recovery. Chairman Wang Ming-cheng noted that rising construction costs make short-term price drops unlikely. Vice Chairman Chang Ching-tsai added that the Middle East conflict and increased earthmoving fees have further inflated construction costs, now at approximately NT$240,000 per ping. Despite this, pre-sale homes remain attractive due to their inflation-resistant nature.
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Frequently Asked Questions
- Q: What is the current state of Taiwan's real estate market?
- A: Due to Central Bank regulations and rising construction costs, housing prices are difficult to decrease, but sales are showing signs of recovery.
- Q: What are the main reasons why housing prices are not falling?
- A: Construction costs (such as earthmoving fees and rebar prices) are continuously increasing, so developers have no reason to lower prices.