Northern Taiwan property launches decline 17.6% amid credit controls

New construction launches in Northern Taiwan have declined by 17.6% in the first three quarters of the year, totaling 766.7 billion TWD. Major metropolitan areas including Taipei, New Taipei, and Taoyuan have seen significant drops in new project volume, with Taoyuan and Taipei both experiencing declines of approximately 30%. In contrast, Hsinchu has seen a substantial increase in project volume, reaching 118.5 billion TWD.

Market analysts attribute this slowdown to credit controls, high property prices, and a shift in investor interest toward the stock market. While the Central Bank has eased some mortgage restrictions for second homes, developers remain cautious, often delaying new projects to avoid increasing market supply.

There is also a noted discrepancy between regulatory views and market sentiment regarding liquidity. While the Financial Supervisory Commission maintains that market funding remains stable, real estate industry leaders warn of tightening liquidity toward the end of the year. This is compounded by insurance companies, which have become a significant source of mortgages, facing their own liquidity pressures as policyholders move funds into the stock market.