Mixed Outlook Emerges as Real Estate Presale Season Approaches
A report published on Thursday by My Housing Monthly indicates that developers in northern Taiwan are gearing up to introduce presale and new housing projects worth NT$147.76 billion (US$4.82 billion) for the upcoming sales season starting on May 20. This represents a notable increase of 21.17 percent compared to the same period last year, when Taiwan's real estate market was adversely affected by the COVID-19 situation, as stated by Chen Tsai-chi, the research manager at My Housing Monthly.
Chen Tsai-chi further added that this surge in projects suggests a boost in developers' confidence following the government's relaxation of most COVID-19 restrictions. However, it is important to note that this figure is the second-lowest recorded in the past five years. Economic challenges and unfavorable policies continue to exert a dampening effect on sales, contributing to this relatively modest increase.
Among the various regions, New Taipei City leads the pack in terms of new projects, with a total value of NT$73.8 billion. The magazine report highlights that a significant number of projects in the city are centered around the MRT Yongning Station, located in Tucheng District. JSL Group and Hiyes International Co are preparing to introduce over 1,000 apartment units in this area. Additionally, the Banciao and Wugu districts are expected to contribute an additional NT$10 billion to the new projects in New Taipei City.
In Taipei, projects are valued at NT$38.1 billion, according to Chen Tsai-chi. Kingdom Construction Corp and Yang Sheng Construction Co have plans for new developments along Fuxing S Rd, while Fabulous Group intends to unveil projects near the MRT Nanjing-Sanmin Station in Taipei's Songshan District. The magazine also mentions a presale project near Taipei Railway Station that will contribute NT$10 billion to the city's overall value of projects.
Despite an upcoming ban on transfers of presale house purchase agreements, developers remain undeterred and continue to forge ahead with their new projects. They had postponed launches during the pandemic but now seem optimistic due to the favorable locations of their developments, stated Chen Tsai-chi.
On the other hand, developers are exercising caution in marketing projects in Taoyuan and Hsinchu. The magazine reveals that new launches in Taoyuan amount to NT$22.06 billion, while those in Hsinchu stand at NT$9.3 billion. This caution arises from disappointing sales experienced by major players in the previous quarter. Chen Tsai-chi added that the markets in Taoyuan and Hsinchu currently appear to be sluggish.
