Taiwan Housing Market Looking Like Trouble
07 November 2011
To call the Taiwan housing market sluggish is a bit of an under-statement, with new construction volume and value down 20% and 40% respectively last month compared to September. With a presidential election drawing near, and a bedraggled global economy a report by Chinese publication Housing Monthly signalled that the Taiwan housing market is at risk of recession in the coming months.
"The three-way presidential race adds to public unease about the nation's future political landscape, driving developers and brokers to cut advertisement money," the report said, referring to the addition of People First Party Chairman James Soong to the Jan. 14 presidential elections.
"The sentiment made developers reluctant to launch new construction projects, pushing new pre-sale housing projects down 40 percent last month from one month earlier," the report said.
Buyers were also down 20% according to the report, which gave the Taiwan market a score of 40 on the index, down one point from the previous month. A reading between 33 and 42 suggests a downturn, while a smaller score indicates recession, it said.