Housing Market Controls Lead to Pre-Sale Recovery; Association: Rising Costs Make Price Drops Difficult
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.
📋 Article Processing Timeline
- 📰 Published: April 8, 2026 at 22:13
- 🔍 Collected: April 8, 2026 at 23:00 (47 min after Published)
- 🤖 AI Analyzed: April 15, 2026 at 20:57 (165h 57m after Collected)
The Taipei Real Estate Agents Association held a media exchange meeting today. Wang Ming-cheng, Chairman of the Taipei Real Estate Agents Association and Chairman of Creative Home Marketing, stated that the Central Bank's housing market control measures introduced in September 2024 initially had no direct impact on pre-sale homes, mainly because pre-sale homes are paid in installments. However, as bank lending tightened and the brokerage market became more conservative, the impact gradually extended to the pre-sale market.
Wang Ming-cheng pointed out that the Central Bank recently eased restrictions for home upgraders, raising the loan-to-value ratio to 60%, indicating a "move towards relaxation." Although a complete loosening is unlikely immediately, first-line sales have shown signs of recovery, with both visitor numbers and transaction performance reflecting this.
Regarding prices, Wang Ming-cheng said that prices "cannot fall" in the short term due to continuously rising construction costs, including earthmoving issues that push up costs. "Developers have no reason to lower prices." Based on the projects he is currently handling, most have not seen price reductions; instead, due to increasing costs, developers are even demanding that these costs be passed on to customers.
He said that real estate agents are on the front lines of the market and can immediately grasp sales changes, like "ducks knowing when the spring river warms." The overall response has improved compared to the previous period, and if the market can gently rise, it will be healthier for industry development.
Chang Ching-tsai, Vice Chairman of the Taipei Real Estate Agents Association and Vice Chairman of Aishanlin Construction, stated that the recent outbreak of the Middle East conflict has led to continuous weekly price increases for rebar, and petrochemical products like plastics and waterproof building materials have even seen hoarding. Some construction teams, even after being contracted, have delayed construction due to increased costs. To avoid penalties for delayed handover, developers must absorb some costs themselves, further increasing construction expenses.
Additionally, the chaos in earthmoving this year has continuously increased clearing fees. In the past, construction costs per ping were about NT$200,000, but now they have increased to about NT$240,000.
However, Chang Ching-tsai said that with rising costs and policy adjustments, coupled with the current overall price increases, real estate still has anti-inflationary characteristics. Pre-sale homes, due to their installment payment plans, locked-in prices, and absorption of inflation during the construction period, remain attractive to homebuyers. For first-time buyers, given the high rents, homeownership still holds long-term asset allocation value. (Editor: Yang Kai-hsiang) 1150408
Wang Ming-cheng pointed out that the Central Bank recently eased restrictions for home upgraders, raising the loan-to-value ratio to 60%, indicating a "move towards relaxation." Although a complete loosening is unlikely immediately, first-line sales have shown signs of recovery, with both visitor numbers and transaction performance reflecting this.
Regarding prices, Wang Ming-cheng said that prices "cannot fall" in the short term due to continuously rising construction costs, including earthmoving issues that push up costs. "Developers have no reason to lower prices." Based on the projects he is currently handling, most have not seen price reductions; instead, due to increasing costs, developers are even demanding that these costs be passed on to customers.
He said that real estate agents are on the front lines of the market and can immediately grasp sales changes, like "ducks knowing when the spring river warms." The overall response has improved compared to the previous period, and if the market can gently rise, it will be healthier for industry development.
Chang Ching-tsai, Vice Chairman of the Taipei Real Estate Agents Association and Vice Chairman of Aishanlin Construction, stated that the recent outbreak of the Middle East conflict has led to continuous weekly price increases for rebar, and petrochemical products like plastics and waterproof building materials have even seen hoarding. Some construction teams, even after being contracted, have delayed construction due to increased costs. To avoid penalties for delayed handover, developers must absorb some costs themselves, further increasing construction expenses.
Additionally, the chaos in earthmoving this year has continuously increased clearing fees. In the past, construction costs per ping were about NT$200,000, but now they have increased to about NT$240,000.
However, Chang Ching-tsai said that with rising costs and policy adjustments, coupled with the current overall price increases, real estate still has anti-inflationary characteristics. Pre-sale homes, due to their installment payment plans, locked-in prices, and absorption of inflation during the construction period, remain attractive to homebuyers. For first-time buyers, given the high rents, homeownership still holds long-term asset allocation value. (Editor: Yang Kai-hsiang) 1150408
FAQ
What is the current state of Taiwan's real estate market?
Due to Central Bank regulations and rising construction costs, housing prices are difficult to decrease, but sales are showing signs of recovery.
What are the main reasons why housing prices are not falling?
Construction costs (such as earthmoving fees and rebar prices) are continuously increasing, so developers have no reason to lower prices.