House prices up by 2.7% y-o-y in Q1 2020
Nationwide house prices rose by 2.7% in Q1 2020 from a year earlier, following a y-o-y decline of 1.13% in Q4 2019 and annual rises of 2.86% in Q3, 2.25% in Q2 and 2.25% in Q1. Quarter-on-quarter, house prices increased 4.4% in Q1 2020.
The housing market slowed in recent years, after dramatic government measures to curb speculative house purchases.
Demand is now falling; supply continues to rise
In May 2020, housing transactions in Taiwan’s six major cities plunged 21.7% to 17,201 units from a year earlier, as concern over the coronavirus outbreak drove potential buyers to the sidelines. For the first five months of 2020, housing transactions fell by 3.2% y-o-y, following a 9.4% growth in 2019.
In contrast, the total number of residential construction licenses issued rose by 4.7% y-o-y to 47,334 units in the first four months of 2020, following strong growth of 22.1% in 2019 and 32.3% in 2018, according to the Ministry of Interior.
Rents, rental yields: amazingly low yields in Tapei at 1.57%
Taipei apartment costs are at $7,112 per sq. m.
| Taiwan: typical city centre apartment buying price, monthly rent (120 sq. m) | |||
| Buying price | Rate per month | Yield | |
| Taipei | $853,440 | $1,117 | 1.57% |
Recent news. The economic repercussions of the COVID-19 outbreak in Taiwan is relatively milder than in neighbouring countries, after the Taiwanese economy expanded by 1.54% year-on-year in Q1 2020. Though it is a slowdown from the previous quarter’s 3.3% expansion and the slowest growth since Q2 2016. Recently, the Directorate General of Budget, Accounting and Statistics (DGBAS) predicted that the economy will contract by 1.67% this year, following expansions of 2.71% in 2019, 2.75% in 2018, 3.31% in 2017, 2.17% in 2016 and 1.47% in 2015.
