Home price index in Taiwan up 1.43% sequentially in Q3

CNA file photo
CNA file photo

Taipei, Jan. 2 (CNA) The home price index, which gauges fluctuations in residential property value in Taiwan, rose 1.43 percent quarter-on-quarter in the third quarter, according to the Ministry of the Interior (MOI).

Data compiled by the MOI showed that the home price sub-indexes in the six largest cities in Taiwan — Taipei, New Taipei and Taoyuan in the north, Taichung in the central part of the country, and Tainan and Kaohsiung in the south — all moved higher in the third quarter.

The ministry said the home price index for all Taiwan stood at 106.89 in the third quarter, up 1.43 percent from the second quarter and also up 3.21 percent from a year earlier.

Among the six largest cities, sequential home price growth in Taoyuan, Taichung and Tainan even passed 2 percent, outperforming the national average and three other major cities with their home price sub-indexes up 2.12 percent, 2.05 percent and 2.56 percent, respectively, according to the data.

Home prices in Taoyuan, Taichung and Tainan also rose 3.43 percent, 5.02 percent and 5.73 percent, respectively, from a year earlier, the data showed.

However, the hike in home prices in major urban areas has sparked an outcry among home buyers, in particular young first-time home buyers, who have complained they cannot afford to buy pricier and pricier residential property.

In response to the increase in the latest home price index, the ministry said it will continue to watch developments in the local home market closely and is determined to rein in market speculation.

According to the MOI, the home market in Taoyuan was largely boosted by the development of the Taoyuan arts and cultural park as well as home projects located in regions, including Chungli District.

Home prices moved higher in Taichung in the wake of the construction of the metro system, while Tainan’s home prices grew at a higher pace due to new investments in the Southern Taiwan Science Park and new home projects in Yongkang and Anping districts.

In Taipei, the home price sub-index rose 1.59 percent from a quarter earlier and grew 1.77 percent from a year earlier, while the sub-indexes in New Taipei and Kaohsiung also rose 1.21 percent and 0.91 percent, respectively, from a quarter earlier, and added 2.14 percent and 2.76 percent, respectively, from a year earlier.

In early December, the central bank announced measures to tighten rules on mortgages extended by banks, in an effort to fight speculation in the local property market, a move expected to cut liquidity from the home market and push prices lower.

Source: The Central News Agency (CNA)