Taiwan real estate market faces high inventory and falling luxury prices

The real estate market in Northern Taiwan is experiencing a period of stagnation characterized by high inventory and weak transaction volumes. In July, the number of properties for sale reached 1,600 cases, reflecting significant selling pressure as new supply enters the market while old stock remains unsold.

Market indicators show a decline in buyer interest, with weekly average visitor and transaction numbers hitting three-month lows. Factors contributing to this downturn include seasonal travel, typhoon season, stock market volatility, and existing credit restrictions and housing policies. While some developers in areas like Taoyuan have stabilized prices, the gap between asking and transaction prices remains narrow, limiting buyer attraction.

In the luxury segment, high-end properties are seeing price adjustments to stimulate sales. In Taipei, the Diamond Power Taipei Star recorded transactions with unit prices falling below the 2 million TWD threshold, ranging between 1.9 million and 1.955 million TWD. Similarly, the Keijingze development in Dazhi has seen unit prices drop due to the building's age and changing market conditions. Experts suggest that high-value mortgage restrictions and increased holding costs are driving developers to adopt more aggressive pricing strategies to reduce inventory.