Home purchasing

Home purchases fall 27% from first quarter

RESILIENT PRICES:
Cathay Real Estate said low borrowing costs have eased mortgage charges, which is why asking prices fell only 0.31%.

  • By Crystal Hsu / Journalist

Presales and new housing projects totaled NT $ 245.6 billion (US $ 8.73 billion), down 27% from three months earlier, as unfavorable policy measures and a COVID outbreak -19 sidelined developers, although asking prices remained resilient, a Cathay Real Estate Development Co (國泰 建設) survey said yesterday.

Volume fell 35.8% from same period last year as two waves of selective credit checks and spikes in the number of local COVID-19 infections held back transactions, survey found .

The slowdown came despite encouraging economic fundamentals, with Taiwan’s GDP growing 7.47% in the second quarter and the central bank keeping interest rates at an all-time high, Cathay Real Estate said.

Photo: ANC

Low borrowing costs eased the mortgage burden, which is why nationwide asking prices averaged NT $ 307,100 per ping (3.3m2), down from just 0 , 31% from the previous quarter, the Taipei-based developer said.

Average prices were NT $ 909,300 per ping for new homes in Taipei and NT $ 405,000 in New Taipei City, according to the survey, adding that new homes averaged 237,000 to 272. NT $ 200 per ping to Taoyuan, Taichung, Tainan and Kaohsiung.

The price negotiation margin was 13.45% nationwide, unchanged from the previous quarter, with developers and builders refusing to budge, unfazed by sharp increases in property taxes applicable to project contract transfers presale, he said.

The price concessions were most evident in Taoyuan (15.15%) and Taichung (14.87%), Cathay Real Estate said.

The 30-day sell rate fell 0.26 percentage points to 11.45%, the company said.

Hsinchu County and City had the highest rate at 22.23%, while it was 8.26% in Taoyuan, according to the survey.

The apartments that cost around NT $ 13.78 million were the most popular among buyers, he said.

The trades index was 240.33, down 20.44% from three months earlier, dragged down by poor indices in Taipei, New Taipei City, Taoyuan, Taichung and Kaohsiung, he said. .

The decline was most marked in Kaohsiung with 59.71%, followed by Taoyuan (26.29%) and Taipei (25%), according to the survey.

Builders in Kaohsiung have likely postponed new product launches, while poor locations explain the low sales rates in Taichung, he said.

However, Hsinchu and Tainan reversed the trend with gains of 58.45 and 48.27% respectively, with healthy real demand supporting sell rates, he said.

In general, the nationwide Level 3 COVID-19 alert has made finding housing impractical, with builders and brokers seeking to control operating costs by avoiding promotional activities, has t -he declares.

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