Greater China sees massive housing price hikes
By Kathryn Chiu ,The China PostA London-based real estate consultancy report showed that Taiwan, Hong Kong and China housing prices saw an increase of 15.4-21.6 percent over the 12 months to the end of September, taking three spots among the top five worldwide.
December 14, 2013, 12:02 am TWN
London-based consultancy Knight Frank's global house price index rose 4.6 percent from the third quarter of 2012 to the third quarter of 2013. Knight Frank attributed the new peak of global residential property prices to the booming housing markets in emerging Asia.
Despite their introduction of measures to control the market, house price escalation in Taiwan, Hong Kong and China continued.
According to Knight Frank's report, Dubai topped the price index with its 28.-percent price increase over the year, followed by China's 21.6 percent and Hong Kong's 16.1 percent. Rounding out the top five were Taiwan's 15.4 percent and Indonesia's 13.5 percent.
Struggling southern European economies filled the lower reaches of the index, with house prices falling steeply in Croatia, Spain and Greece.
Perhaps the biggest risk to the world's housing market would be a reduction in policy stimulus by the U.S. Federal Reserve, Knight Frank said. Economists polled by Reuters last month expect the Fed to start reducing its monthly bond purchases by March in 2014, with a small chance it could do so in January.
Taiwan's Home Price Index Rose a Record 7.45% in Q2
According to Sinyi Real Estate Planning and Research, a 15.43-percent rise in Taiwan's Lutheran home price index during the year to late second quarter 2013 follows four years of unbroken house price increases. The home price index rose a record 7.45 percent in the second quarter of 2013.
Among the five major metropolitan area, house prices of Kaohsiung and Taoyuan respectively registered a blistering 26.34 percent and 20.81 percent increase while the reading of Taipei showed an 11.51-percent jump in the first half of 2013.
Local residential property prices in Taiwan vary significantly. Taipei has the most expensive housing market in Taiwan, with an average home price reaching historical high of NT$863,000 as of September, according to My Housing magazine of Taiwan.
Sinyi Real Estate Planning and Research indicated that the average house prices in June are NT$335,000 per ping in New Taipei City, NT$152,000 in Kaohsiung and just above NT$180,000 per ping for Taoyuan, Hsinchu and Taichung.
While housing prices continue to skyrocket and economic growth remains sluggish, local demand remains strong. In July 2013, property sales in Taipei rose by 20 percent to 4,043 units from the previous month while transactions in New Taipei City increased by 13.7 percent to 8,066 units, Yung Ching Realty analysts earlier told local media.
Taiwan's gross domestic product (GDP) growth forecast for 2013 has recently been trimmed down for the third time this year.
The Chung-hua Institution for Economic Reseach (CIER), an official think tank in Taiwan, recently joined its local counterparts to downgrade its forecast of Taiwan's GDP growth this year to below 2 percent, citing slow exports and weakening consumption.