Taiwan real estate market faces pressure from pre-sale handovers

The Taiwan real estate market is facing challenges as a wave of pre-sale house handovers approaches, creating significant pressure for homeowners looking to upgrade. Those attempting to sell their old homes to fund new purchases are struggling due to a cooling market and stricter banking conditions. Banks are reportedly hesitant to support 'buy first, sell later' arrangements due to the administrative difficulties of post-loan management.

Financial constraints are intensifying for second-home buyers, as banks may limit mortgage lending to 60% of the property value, increase interest rates to approximately 3.5%, and offer no grace periods for repayment. This creates a liquidity squeeze for those whose old properties remain unsold.

In terms of consumer choice, experts suggest that buyers should weigh the advantages of second-hand homes against pre-sale properties based on timing and financial planning rather than just age. Second-hand homes offer immediate occupancy and the ability to inspect actual conditions like lighting and ventilation, whereas pre-sale homes provide new facilities and longer periods for fund preparation, albeit with a 2-to-5-year waiting period and potential construction variables.