Global Property Guide

Financial Information for Residential Property Buyers


Taiwan's unhappy property owners

Last Updated: July 31, 2018

Last Updated: Jul. 31, 2018
TAIPEI - Apartmentts COST (US$) YIELD (p.a.) PRICE/SQ.M. (US$)
TO BUY MONTHLY RENT TO BUY MONTHLY RENT
Beitou 5,433 9.68 2.14% 505 0.90
Da´an 10,571 14.52 1.65% 982 1.35
Datong 6,421 11.49 2.15% 597 1.07
Nangang 6,323 10.59 2.01% 587 0.98
Neihu 6,421 10.28 1.92% 597 0.96
Shilin 7,903 9.98 1.52% 734 0.93
Songshan 8,496 13.01 1.84% 789 1.21
Wanhua 6,026 10.89 2.17% 560 1.01
Wenshan 5,236 8.17 1.87% 486 0.76
Xinyi 9,385 14.52 1.86% 872 1.35
Zhongshan 9,187 14.52 1.90% 854 1.35
Zhongzheng 9,187 13.61 1.78% 854 1.26
MADRID SUBURBS - Majadahonda apartments
Beitou 4,347 13.01 3.59% 404 1.21
Da´an 9,978 18.15 2.18% 927 1.69
Datong 6,224 15.12 2.92% 578 1.41
Nangang 5,927 14.22 2.88% 551 1.32
Neihu 5,730 15.12 3.17% 532 1.41
Shilin 7,409 14.52 2.35% 688 1.35
Songshan 8,496 17.85 2.52% 789 1.66
Wanhua 5,532 14.52 3.15% 514 1.35
Wenshan 5,137 12.40 2.90% 477 1.15
Xinyi 10,373 17.85 2.06% 964 1.66
Zhongshan 6,520 16.33 3.01% 606 1.52
Zhongzheng 9,780 16.64 2.04% 909 1.55
New Taipei whole floor homes
Banqiao 4,742 7.86 1.99% 441 0.73
Sanchong 4,446 8.17 2.20% 413 0.76
Yonghe 5,137 7.86 1.84% 477 0.73
Zhonghe 4,347 7.56 2.09% 404 0.70
New Taipei suites
Banqiao 5,631 12.10 2.58% 523 1.12
Sanchong 4,742 11.49 2.91% 441 1.07
Yonghe 5,829 11.80 2.43% 541 1.10
Zhonghe 5,038 13.61 3.24% 468 1.26
All yields are gross - i.e., before taxes, repair costs, ground rents, estate agents fees, and any other costs. Net yields (what you´ll really earn) are typically around 1.5% to 2% lower.
Source: 591 Definitions: Data FAQ See also: Update Schedule

Taipei now vies with Monaco for having the lowest yields in the world. With buying prices per square metre averaging a steller US$7,200 to US$9,200, depending on size, and rents still affordable (where else can you rent a US$1.8 million home for just US$2,200 per month?), Taipei is not a happy place for landlords.

The owner of an apartment in Taipei will be lucky to realize 2% yields, except on the very smallest apartments. Given that the Global Property Guide´s figures are for gross rental yields, i.e., do not make any allowance for vacant periods, for legal costs, administration costs, cleaning and repairs, rental taxes, property taxes, and other taxes, it is safe to say that landlords in Taiwan earn nothing on their apartments.

We believe apartments in Taipei are overvalued - and will fall in price. But we should warn readers that we can get it wrong!

Comments

Alan Stout | August 17, 2010

I am looking for data on rental property price trends for Taipei and/or Taiwan over the past 5 to 10 years on a percentage basis. I am interested to know much rent property has increased / decreased over this time frame.

Valentino Hsiao | November 07, 2013

Taiwanese property buyers and owners expect much more on capital gain than cash flow from rent, so they would never get "unhappy", since the housing price skyrocketed over the last decade.

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