Average home price in Taipei declines

According to a July study conducted by Yungching Real Estate Agency, the average home price in Taipei in the month was NT$267,000 a ping, a drop of some 10 percent from June. A ping is about 3.3 square meters.

Meanwhile, the number of closed deals in the city fell 15 percent in July as compared to June, the study shows.

According to Yeh Ling-chi, general manager of Yungching, a slump in Taipei City’s real estate market is still going on, despite the successful auctioning-off of two pieces of property in the city — the 800-ping block of land near National Taipei University and a huge block of land near the Taan Park in downtown Taipei.

“Home prices in the more prosperous areas of Taipei are more resistant to the declining trend,” Yeh said.

As for the rest of Taiwan, Taichung City saw July average home price lowered to 91,000 a ping, a drop of five percent from June. The number of closed deals fell by 30 percent.

Kaohsiung City, meanwhile, saw July average home price at NT$90,000 a ping, about the same as June, while the number of closed deals went up slightly by five percent.

Yungching’s study echoes a survey conducted by another brokerage firm, H&B Business Group, which showed in July, there was a 20 percent month-over-month decline in the number of closed deals island-wide.

Most buyers are purchasing homes for residential purposes, rather than for investment, the study shows.

“It’s clear that we have a buyer’s market as most sellers lowered their prices in the hope of getting rid of their property as soon as possible, due to the mounting mortgage pressure,” said Chen Hsi-tsung, general manager of H&B.

“Furthermore, as the Ghost Month has arrived, more sellers are expected to lower prices to attract buyers.”

In the Chinese culture, Ghost Month is the month of July on the Lunar Calendar, which this year lasts from Aug. 1 to Aug. 30. Most people are hesitant to buy houses during this period.

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