Taiwan's Housing Market: North and South Diverge; Shin Lih Yang Reports Stable Rigid Demand in Taipei/New Taipei, Cooling in Central/Southern Regions

Taipei, May 6 (CNA) The real estate market in Northern Taiwan has seen demand gradually return to self-occupancy needs, influenced by policy adjustments and a wait-and-see market atmosphere. Chiu Chun-yang, Vice General Manager of real estate agency Shin Lih Yang, pointed out that this year's housing market presents a divergent picture between north and south. Taipei and New Taipei, due to limited supply, are supported by rigid demand, leading to relatively stable sales. In contrast, central and southern Taiwan are experiencing a significant slowdown in sales due to the exit of investment buyers and excessive supply. Overall, the market is estimated to remain flat in the second half of the year.

Shin Lih Yang held a press conference today for new project sales. Chiu Chun-yang stated that the current market in Taipei and New Taipei "has almost no investors," primarily driven by rigid demand from self-occupants and upgraders. Therefore, homebuyers' requirements for brand developers, location conditions, and product planning are higher than in the past. Recently, sales performance for some key projects in indicator areas, including the Xindian Yangbei Redevelopment Zone, has been relatively stable.

Huaku Construction, for instance, made its debut in the Xindian Yangbei Redevelopment Zone with a new project. Hung Chia-sheng, General Manager of Huaku Construction, said that the Xindian Yangbei Redevelopment Zone has undergone nearly nine years of development, with a development rate exceeding 80%. The supply of new pre-sale projects is relatively limited. This project is a joint venture with Yu Cheng Enterprise, integrating a 1,513-ping (approx. 5,000 sqm) base. The customer base includes local residents from Xindian, as well as upgraders from Taipei City's Daan, Xinyi, and Zhongzheng districts.

Regarding recent housing market sentiment, Chiu Chun-yang noted that Taipei/New Taipei and central/southern Taiwan form two distinct markets. Taipei and New Taipei benefit from demographic dividends and employment support, with demand primarily driven by rigid needs. According to Shin Lih Yang's project sites in Taipei/New Taipei, sales have been stable since the end of last year, not weakening despite the stock market surge.

He observed that central and southern Taiwan's property prices had a lower base in earlier years, but recent years saw a delayed catch-up driven by TSMC's factory effects, leading to a high proportion of investors. However, in the past two years, under the influence of the central bank's housing market control measures and a large number of new projects, sales have significantly receded.

He believes that housing market sales in the second half of this year should remain flat, unless the government introduces further favorable housing policies. As the current New Youth An policy is set to expire in July this year, the market is watching whether a "New Youth An 2.0" or similar extension measures will be launched. Additionally, as long as interest rates do not rise significantly, fluctuations in real estate and stock markets should not be excessive. (Editor: Chang Chun-mao) 1150506

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