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Report finds that luxury residential sales have fallen by 50% across Taiwan

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Sales in Taipei have fallen 43% year-on-year through August 2015. The nation's five other municipalities have also posted dramatic drops.

Cozyta / Getty images
Sales in Taipei have fallen 43% year-on-year through August 2015. The nation's five other municipalities have also posted dramatic drops.
Cozyta / Getty images

Tony transactions are taking a tumble in Taiwan. Focus Taiwan reports on new figures from the Yung Ching Realty Group which show that the number of high-end home sales across the nation’s municipalities have fallen, on average, by 50% over the first eight months of this year. The largest drop was in New Taipei where transactions fell by 67%.

Why such a drastic drop? The decrease was due mainly to government policies that are aimed at reining in high-flying home prices, said Huang Shu-wei (黃舒衛), a manager in the research department of Yung Ching Realty Group (永慶房屋). Other factors included growing caution among high-asset groups amid an economic slowdown, and uncertainty ahead of the Jan. 16 presidential and legislative elections, Huang said. Under Taiwan regulations, luxury homes are defined as housing units valued at more than NT$70 million (US$2.17 million) in the capital Taipei, more than NT$60 million in neighboring New Taipei, and over NT$40 million in other areas.

The losses represent a 43% drop year-on-year for Taipei and 50% drop year-on-year for New Taipei over the given time period. While not exactly mirroring the luxury losses, struggles are being tracked among other property types in the Taiwanese market. In Taipei and New Taipei, sales were down 48% and 35%, respectively, year-on-year through the first eight months of 2015. [Focus Taiwan]