Housing sales poised to hold at current levels
By Ted Chen, The China PostTAIPEI, Taiwan -- Fourth quarter housing and real estate sales may hold at current levels, marking the possible beginnings of a cooling market, with a significant number of speculators initiating profit taking amid growing uncertainties, according to the latest industry outlook.
October 1, 2013, 12:09 am TWN
The real estate and housing markets have been beleaguered by a number of concerns including the extension of the luxury tax and the central bank's hints of interest rates hikes, adding a tremendous amount of uncertainty, said analysts from Yung-Ching Realty (永慶房屋). Despite looming uncertainties, the company expects fourth quarter property sales to remain at current levels as concerns over interest rates hikes are offset by announcements that current quantitative easing measures in the U.S. will not be scaled down. Regarding the central bank's proposed interest rate hikes, Yung-Ching analysts stated that the move will not benefit a majority of mortgage-holders who face exorbitant fees if they elect to switch lenders. The company's analysts also stated that they did not detect a rise in the number of home owners who have decided to move to smaller-sized properties.
According to My Housing Magazine (住展雜誌), housing sales in the week of September 28 dropped in year-on-year terms from NT$218.9 billion to NT$179.4 billion, an 18-percent decline. However, sales in the previous period still rank as the second highest in the past five years.
Analysts at H&B Business Group (住商不動產) stated that they have found numerous instances in which speculators elected to liquidate their holdings during period of high prices, in an effort to secure their profits as the luxury tax passes its two-year anniversary.