TAIPEI: Transactions of residential and commercial housing in Taipei last month fell to a 28-year low as the nation’s economy is continuing to show signs of slowing, taking a toll on property investor confidence, a report by Sinyi Realty Inc said yesterday.
Sinyi Realty, one of the nation’s leading property sales agencies, said company-compiled data showed that fewer working days last month, when the Lunar New Year holiday fell, and concerns over a heavier tax burden under a new scheme effective from Jan. 1 stopped many investors from jumping into the market.
Transactions of homes, shops and offices in Taipei, the most closely watched properties in Taiwan, fell 25 percent last month from January to 1,602 units, representing a decline of 42.6 percent year-on-year, the realtor said.
The economy grew just 0.75 percent last year, sharply down from a 3.92 percent increase in 2014, as the nation’s export performance was hit hard by weakening global demand.
The new tax law aims to curb property market speculation by imposing a capital gains tax of up to 45 percent on people who sell commercial or residential properties within a certain period of time from the date of purchase.
Many property investors rushed to make transactions before the new tax took effect, leading to a drop in sales since the beginning of the year, Sinyi Realty manager Tseng Ching-der said.
Taipei was not the nation’s only major city to record a fall in transactions of residential and commercial property.
New Taipei City, Taoyuan, Taichung, Tainan and Kaohsiung also saw sales fall 24 percent to 40 percent month-on-month to less than 2,000 units in their respective markets last month, Sinyi Realty said.
In New Taipei City, the most populous city in Taiwan, transactions of homes, shops and offices last month fell 39 percent from January and dipped 39.1 percent year-on-year to 1,613 units.
Sales in Taoyuan last month dropped 33 percent from January and 36.8 percent year-on-year to 1,268 units.
Transactions in Taichung fell 38 percent from January and 40.2 percent year-on-year to 1,408 units, the data showed.
In Tainan, transactions dropped 24 percent from January and 32.7 percent year-on-year to 788 units, while sales in Kaohsiung declined 40 percent monthly and 36.2 percent annually to 1,260 units, the data showed.
