The northern Taiwan home market lost steam in May, said a trade publication yesterday while giving the market a yellow-blue signal indicating sluggishness.
For March and April, a green signal was given to northern Taiwan real estate, My Housing Magazine said. A green signal indicates stability.
According to the trade publication, the score that northern Taiwan realty received in May fell two points from April due to an increase in price negotiation rate and a reduction in the amount of new home ads in the media.
Supplies of homes declined a bit, yet the decline wasn't noticeable, My Housing said, as pre-construction home rollouts still stood at above NT$50 billion, with nearly 1,000 deals closed during last month.
Chen Yun-ju, director of My Housing, said Taiwan's home market experienced a “multiplication effect” due to the European debt crisis. “The debt crisis has shattered investors confidence globally. The ensuing correction in U.S. stocks led to a similar retreat of Taiwan stocks. The real estate market suffered as a result,” she said.
According to her, in the second half of May, a reduction of two types of buyers was seen — those looking to move to new homes, and those seeking high-priced products. Buying was especially tepid in prime areas of Taipei.
She said the market was dominated by first-time buyers who were mostly interested in satellite areas, including Danshui District of New Taipei City, Keelung City, and Luzhu Township, Taoyuan City and Bade City of Taoyuan County.
Earlier this week, the Construction and Planning Agency released a report that found Taiwan's home price-to-income ratio for the first quarter was 8.2, while the figure for Taipei was 12.2.
According to the agency, home sales in Taiwan during the first quarter totaled 36,148, a decline of 17 percent compared to Q4 2011 and 40 percent compared to Q1 2011.
Prices, meanwhile, averaged NT$8.38 million, a decline of 5 percent quarter-on-quarter and 8 percent year-on-year.
Source: http://www.chinapost.com.tw/business/asia-taiwan/2012/06/08/343732/North-Taiwan.htm
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