Stock Market Hot, Real Estate Market Cold: Zhuzhan Magazine Index Continues to Show Yellow-Blue Light

Central News Agency

(Taipei, May 7, Central News Agency reporter Ho Hsiu-ling) The "Zhuzhan Magazine Index," representing the new housing market in Northern Taiwan, entered the post-329 holiday period in April. The indicator has been a declining yellow-blue light for the 12th consecutive month since May last year, with a total score of 34.3 points, the second lowest in the past year. Zhuzhan Magazine pointed out that even with the central bank's slight easing of mortgage measures, buying sentiment has not significantly recovered, presenting a situation where the "stock market is hot, but the real estate market is cold."

Chen Ping-chen, director and spokesperson of Zhuzhan Magazine's research and development office, stated in a press release today that April should still have some post-329 holiday projects and serve as a warm-up for the 520 holiday period; however, the supply in April showed a significant decline, with new projects only totaling over NT$30 billion, a decrease of over NT$60 billion compared to March. This level of project launch usually only occurs during off-peak seasons such as the Ghost Month or Lunar New Year.

He said that if it weren't for Baojia Construction launching a multi-billion dollar landmark project in Zhongli District, Taoyuan City, the situation would be even more dire, completely lacking the usual vibrancy of a traditional peak real estate season. This indicates that the central bank's easing measures for second-home mortgages in March this year have had almost no effect on the new housing market.

The demand-side tracking indicators, such as the average weekly number of visitors and transaction groups for key projects, still fall into the lowest category, with less than 10 visitor groups per week and even less than 1 transaction group.

Some projects, due to being highlight cases, in the sweet spot of new launches, or frequently holding on-site events, may see double-digit weekly viewing volumes, but this does not necessarily effectively reflect in transactions. Since July last year, the average has been less than one group per week. Homebuyers have been unresponsive to the central bank's slight softening stance and holiday stimuli, and the stock market boom has not injected into the real estate market, presenting a contrasting situation where the stock market is soaring and the real estate market is at rock bottom.

Chen Ping-chen pointed out that with elections approaching in the second half of the year, real estate prices will inevitably be difficult to rise, so as not to interfere with the election situation, and it is unlikely that favorable policy opportunities will be seen in the real estate market. Only two months remain in the first half of the year, and there are landmark projects worth tens of billions of NT dollars recently in Banqiao District and Taishan District in New Taipei City, as well as Zhubei City and Zhudong Township in Hsinchu County. However, even with a certain level of popularity for new projects, it still tends to be individual market conditions supported by brand and location, and does not have the ability to drive the real estate market. Currently, the real estate market stalemate remains difficult to resolve. (Edited by Chang Liang-chih) 1150507

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