Northern Taiwan property market remained sluggish in May: poll

2018/06/11 13:37:46 fontsize-small fontsize-default fontsize-big
Northern Taiwan property market remained sluggish in May: poll

Taipei, June 11 (CNA) The property market in northern Taiwan flashed a "yellow-blue" light in May for the third consecutive month, pointing to sluggish growth, according to a poll reported in the real estate magazine My Housing.

Citing the survey, the magazine said the housing index for northern Taiwan rose 0.1 points in May from the previous month to 34 points, remaining in the "yellow-blue' category, which is a range of 32-42 points.

It was the third straight month that the index increased slightly but continued to flash yellow-blue.

The index covers major counties and cities in northern Taiwan such as Taipei, New Taipei, Keelung, Taoyuan, Hsinchu and Yilan, which account for more than 50 percent of the total residential and commercial property transactions in the country.

Ho Shih-chang (何世昌), a research manager at the magazine, said the improvement in May largely resulted from an increase in the number of listings of pre-sale residential housing and home transactions.

Under the magazine's color-coded system, red indicates overheating, yellow-red shows fast growth, green represents stable growth, yellow-blue signals sluggish growth, and blue indicates contraction.

Among the six factors that make up the index, the sub-index for the listing of pre-sale residential properties rose from 7.99 in April to 8.27 points in May, while the sub-index for home transactions increased from 4.69 to 5.16, according to the magazine survey.

Ho said home transactions in northern Taiwan climbed about 11 percent in May from the previous month on solid buying in Taoyuan and Hsinchu, while the luxury housing market in Taiwan appeared strong as sellers seemed willing to cut prices to strike quick deals.

The findings of the survey followed the release of local government data for May, which showed a 36.6 percent monthly increase in transactions of homes, shops and offices in the country's six biggest cities -- Taipei, New Taipei, Taoyuan, Taichung, Tainan, and Kaohsiung.

Ho said May was a peak season for the domestic property market, with NT$70 billion (US$2.35 billion) worth of pre-sale residential properties listed largely in Taipei, New Taipei and Taoyuan.

However, the other four factors in the housing index either weakened or remained unchanged from April, which limited the housing index for May, Ho said.

The growth of the local property market has been slow, he said, noting that the May index was at the lower end of the yellow-blue light category.

The sub-index for listings of newly completed homes fell in May to 5.55 from 6.11 in April, while the indexes for the amount of property advertising, home price negotiations, and the number of visits by potential buyers remained unchanged at 4.18, 5.12 and 5.76, respectively.

(By Pan Chih-yi and Frances Huang)

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