Transactions of residential and commercial property in the six largest cities in Taiwan fell almost 15 percent from a year earlier in June as market analysts cited the public’s concerns over the sharp increase in domestically-transmitted COVID-19 cases for the decline, according to statistics compiled by these local governments.

The data showed transactions of homes, shops and offices in the six major cities — Taipei, New Taipei, Taoyuan, Taichung, Tainan and Kaohsiung — fell 14.9 percent from a year earlier to 21,304 units. The June figure also dropped 6.7 percent from a month earlier.

The data also indicated southern Taiwan suffered a much steeper year-on-year decline in June compared to other regions, with housing transactions in Tainan and Kaohsiung falling 31.2 percent and 20.0 percent year-on-year to 2,244 units and 3,358 units respectively.

Tseng Ching-der (???), a research manager with Sinyi Realty Inc., said since late April, the daily number of domestically transmitted COVID-19 cases had breached the 10,000 mark in Taiwan, and the effect on the local property market started to emerge to dampen buying interest, but the impact became more apparent in June.

In addition, Tseng said, as the central bank kicked off a rate hike cycle in March, sentiment toward the local property market has also turned more cautious.

In northern Taiwan, transactions of residential and commercial property in Taipei, the most closely watched market in the country, totaled 2,452 units in June, down 17.4 percent from a year earlier; while sales in New Taipei reached 5,394 units, down 3.8 percent from a year earlier; and transactions in Taoyuan hit 3,665 units, down 13.5 percent year-on-year.

Transactions of homes, shops and offices in Taichung, central Taiwan, fell 11.8 percent from a year earlier to 4,191 units in June.

Commenting on the reduced transactions, Charlene Chang (???), a section chief of Taiwan Realty Enterprise, said many home buyers and property investors were still deterred by a series of select credit control measures introduced by the local central bank recently.

Lang Mei-nan (???), a research manager with Great Home Realty, echoed Chang, saying along with the ongoing rate hikes, the central bank’s select credit control is expected to affect property sales in the second half of this year.

Source: Focus Taiwan News Channel