House prices up by 2.06% y-o-y in 2019
Nationwide house prices rose by 2.06% in 2019 from a year earlier, following y-o-y rises of 1.92% in 2018 and 0.55% in 2017, and declines of 2.92% in 2016 and 4.22% in 2015. Quarter-on-quarter, house prices rose by 1.41% in Q4 2019.
The housing market slowed in recent years, after dramatic government measures to curb speculative house purchases.
Demand and supply are rising strongly
Demand continues to rise, thanks to record-low interest rates. Housing transactions in Taiwan’s six major cities rose by 9.4% to 232,031 units last year from a year ago. Likewise, the total number of residential construction licenses issued surged 22.1% to 148,566 from a year earlier, following a 32.3% growth 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|
Recent news. Taiwan’s economy grew by 2.71% in 2019 from a year earlier, following expansions of 2.75% in 2018, 3.31% in 2017, 2.17% in 2016 and 1.47% in 2015, partly driven by a recovery in electronics demand as concerns over US-China trade tension eased, according to the Directorate General of Budget, Accounting and Statistics (DGBAS). However, the Taiwanese government recently lowered its 2020 growth forecast to 2.37%, from its earlier projection of 2.72% amid worries that the COVID-19 outbreak could hit its export-reliant economy.