Taiwan real estate market faces cooling demand and policy constraints

The real estate market across northern, central, and southern Taiwan is experiencing a cooling trend characterized by shrinking transaction volumes, though prices remain relatively firm due to high land and construction costs.

In Taipei, transaction volumes have decreased by over 50% compared to last year. While developers in districts like Datong are proceeding with urban renewal projects, the market for affordable housing is constrained. New projects priced under 20 million TWD are rare, typically consisting of small studio apartments or suites, making them less attractive to first-time homebuyers seeking livable spaces.

In Taichung, the Shuinan Economic and Trade Park remains a focus for long-term asset allocation and home upgraders, but short-term investment demand has retreated. Similarly, in Pingtung, the market is described as extremely cold, with many buyers unable to proceed with home upgrades due to restrictions on second-home mortgage loan limits.

Industry experts suggest that while current demand is stifled by policy and economic conditions, long-term growth in regions like Pingtung may eventually be driven by high-tech industrial clusters and infrastructure developments.