House prices up by 3.55% y-o-y in Q2 2020
Nationwide house prices rose by 3.55% in Q2 2020 from a year earlier, its best showing since Q3 2014. Quarter-on-quarter, house prices increased 1.38% in Q2 2020.
The housing market slowed in recent years, after dramatic government measures to curb speculative house purchases.
Demand is now recovering; supply continues to rise
In June 2020, housing transactions in Taiwan’s six major cities rose by 14.9% from a month earlier and by 3.4% from the same period last year, to 19,774 units – a sign that the market is now recovering. For the first half of 2020, housing transactions were down by 2.1% y-o-y, following a 9.4% growth in 2019.
The total number of residential construction licenses issued rose by 6.2% y-o-y to 72,468 units in the first half 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, with the Taiwanese economy shrinking slightly by 0.58% year-on-year in Q2 2020, following a 2.2% growth in Q1. But still, it was the first contraction since Q1 2016. For the first half of 2020, the economy grew by 0.41%. Recently, the Directorate General of Budget, Accounting and Statistics (DGBAS) predicted that the economy will grow by 1.56% 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.