Housing transactions in 6 major cities up 15% month-on-month in May

Data compiled by local governments on transactions of homes, shops, and offices in the six cities — Taiwan, New Taipei, Taoyuan, Taichung, Tainan, and Kaohsiung — rose to about 22,000 units, an increase of 14.9 percent from a month earlier. The May figure was also up 7.8 percent from a year earlier. (NOWnews)

TAIPEI (CNA) — Transactions of residential and commercial property in Taiwan’s six largest cities rose about 15 percent from a month earlier in May with momentum extending from April on deferred buying, according to local government land departments.

Data compiled by local governments on transactions of homes, shops, and offices in the six cities — Taiwan, New Taipei, Taoyuan, Taichung, Tainan, and Kaohsiung — rose to about 22,000 units, an increase of 14.9 percent from a month earlier. The May figure was also up 7.8 percent from a year earlier.

The strong showing in May was a product of continued momentum from April when transactions of residential and commercial property increased 4.1 percent from a month earlier and also rose 28.1 percent from a year earlier.

It was the second consecutive month sales of homes, shops and offices have hit a five year high, according to the data.

Tseng Ching-der (曾敬德), a research manager with Sinyi Realty Inc., one of the largest property sales agents in Taiwan, said deferred buying from the first quarter of this year, when there was a prolonged Lunar New Year holiday, continues to boost the property market in the six cities.

In addition, Tseng said, it seems property prices have also stabilized in recent months, which has encouraged home buyers for self-dwelling purposes to jump into the market.

In Taipei, the capital city in northern Taiwan, which is the most closely watched property market in Taiwan, transactions of residential and commercial property totaled 2,743 units, up 22.4 percent from a month earlier and an increase of 4.3 percent from a year earlier.

Hsieh Chi-chieh (謝志傑), a senior manager at Yung Ching Group, another major property sales agent in Taiwan, said buying interest appeared particularly strong in Neihu, Zhongshan and Danan districts of Taipei, while an increase in delivery of newly-built homes also boosted transactions in Wanhua district.

In New Taipei, the most populous city in Taiwan, property transactions totaled 5,598 units, up 17.2 percent from a month earlier and up 3.3 percent from a year earlier.

According to Sinyi Realty, strong interest in second-hand homes in Zhonghe, Xindian and Tamsui districts has driven the upturn in New Taipei in May, while a new residential project in Zhonghe also sent sales higher.

Property transactions in Taoyuan, northern Taiwan, hit 3,667 units in May, up 20 percent from a month earlier and 8.8 percent from a year earlier, while sales in Taichung in central Taiwan, totaled 4,141 units, a rise of 25.6 percent from a month earlier and up 13 percent from a year earlier.

Transactions in Taichung were the highest for May in three years.

In southern Taiwan, property sales in Tainan hit 2,216 units in May, up 7.3 percent from a month earlier and 1.2 percent from a month earlier, while Kaohsiung registered transactions of 3,626 units, down 2.2 percent from a month earlier but up 15.7 percent from a year earlier.

In the first five months of this year, transactions of homes, shops, and offices totaled 91,095 units, up 7.6 percent from a year earlier with sales in Kaohsiung hitting 16,637 units, up 21.7 percent from a year earlier, the highest growth among the six cities.

Despite the growth in the five-month period, Hsieh said, the local property market remains concerned over economic growth at home and abroad at a time of rising tensions between the United States and China.

By Wei Shu and Frances Huang