Taiwan's Housing Market: Is It Worse Than the 2008 and 2014 Downturns?

Experts Warn of a Tough Year for Taiwanese Real Estate Amidst Economic Challenges and Government Regulations.

The Taiwanese housing market is facing significant headwinds this year. The Central Bank's seventh wave of credit controls, designed to curb speculation, is ongoing. Simultaneously, the market is grappling with the impact of global economic uncertainties, including potential repercussions from international trade policies that could impact financial markets. This convergence of negative factors has led some experts to believe the current situation is even more challenging than the downturns experienced in 2008 and 2014.

There are indications that some developers are already starting to offer discounts to attract buyers.

Chen Jie Ming, Director of the All-Direction Technology Real Estate Center, emphasizes the importance of comparing prices within the same area and business district to accurately assess whether a project is offering discounted prices. He notes that pre-sale properties, with their higher price points, often struggle to maintain buyer interest, especially when the market cools down. Given the current sluggish demand, with both visitor and transaction numbers at low levels, it's not surprising that some developers are resorting to discounts to stimulate sales.