Bullish housing market sentiment declining: MOI
By Betty Wu, Special to the China Post
July 3, 2014, 12:05 am TWN
TAIPEI, Taiwan -- The Construction and Planning Agency (營建署) under the Ministry of the Interior (MOI) yesterday revealed the results of the residential demand trends survey for the first quarter of the year, which indicated that bullish sentiment on the housing market is on the decline.
The survey showed that among housing transactions in Taiwan's six major cities, the average price of home purchases rose to a record-high NT$10.413 million, and NT$256,000 per ping. A ping is approximately 3.306 square meters.
Most notably, the house price trend index saw declines from figures recorded in the previous quarter, suggesting a decrease in market enthusiasm.
The survey revealed that the residential demand index for all homeowners, including prospective buyers, was rated at 118.2 points in the first quarter, down 6.8 points quarter-on-quarter.
The survey also indicated that Tainan scored the highest in current residential demand measurements in the first quarter at 137.4 points and 123.6 points for future trends, representing a rise in housing demand in the area.
In contrast, bullish sentiment on the housing market for New Taipei City exhibited declines in both current and future index measurements.
In addition, the survey showed that Taipei City home transactions averaged at NT$24.019 million, the second highest in the city's history. The highest average home purchase price was recorded in 2011, at NT$25.079 million. Taipei City also ranked first in home prices at NT$594,000 per ping.
The survey, however, showed that in Taipei 55.2 percent of recent homeowners and 47.5 percent of prospective buyers expressed an upbeat outlook on the housing market, up 3.6 percent and 2.6 percent quarter-on-quarter, respectively.
The survey also showed that rental residential properties had recorded a score of 133.4 points, up 3.1 points year-on-year, indicating an upbeat outlook on revenues from rent collections. With a score of 140 points, an improvement of 15.8 points since the same period last year, Kaohsiung saw the most significant growth in residential rental prospects.