Home Prices in Major Taiwan Cities Hit New Lows in November

Taipei, Dec. 4, 2008 (CENS)--Home prices in Taiwan's major metro areas hit new lows in November with declining transaction volumes, with deals signed in Taichung and Kaohsiung shrinking almost 20% in November from the preceding month.

Sinyi Realty Inc.'s figures, Taiwan's largest realtor, show that the overall home transaction value in November dropped 1.62% from the preceding month, with the average deal in major cities being NT$227,000 (US$6,816 at US$1:NT$33.3) per ping (one ping is 36 square feet) in November, down NT$11,000 (US$330.33) from that in October. The selling price of homes in Taiwan averaged NT$7.77 million (US$233,330) per unit in November, a record low for 2008.

Average selling prices for homes in major cities, except Taipei City, have continued to slide. The growth in sales of medium- and high-priced homes helped average per-ping transaction value to recover to NT$358,700 (US$10,771) in November from previous month's NT$356,300 (US$10,700) in Taipei City.

Yung-Ching Rehouse Co. said Taichung City and Kaohsiung City have been hit the hardest with a 20% shrinkage in overall transaction value in November. Yung-Ching president L.C. Yeh attributes the drop in home deals to eroded confidence towards the future economy, with consumers believing local home prices would decline further.

The compromised consumer confidence has resulted in a built-up of idle funds deposited in financial institutions: Central Bank of Taiwan statistics show term deposits totaled NT$494.4 billion (US$14.84 billion) at the end of October.