Taiwan’s real estate industry draws investors and mixed feelings.
Some think the country is a wonderful place to invest and live, while others say the expenses outweigh the benefits.
Let’s delve into Taiwan real estate trends, costs, and what it means for prospective buyers.
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Taiwan Real Estate Market Trends
Taiwan’s Lutheran Home Price Index climbed 12.47% in the third quarter of 2024, indicating market expansion. Taipei led the home price rise at 10.46% after inflation.
These increases emphasize housing necessity but raise concerns about affordability. Rising house values benefit homeowners but dissuade renters and purchasers.
Albeit Real estate purchases in Taiwan‘s six major cities rose, the influence of foreign investors and affordability are becoming major challenges.
Some lawmakers propose tighter lending laws and higher housing taxes to curb speculative buying. The long-term impact of these steps is unknown, but Taiwan’s real estate market is at a tipping point.
Taiwan Real Estate Prices Overview
Is Real Estate Expensive in Taiwan?
Taiwanese property is too costly.
Taipei, the capital of Taiwan, is one of the priciest cities in Asia for real estate.
Property prices are always rising due to a combination of strong demand, limited supply, and foreign investment. Prices are rising sharply even in smaller cities like Taichung and Kaohsiung.
Is Housing Expensive in Taiwan?
Even with a strong economy, many residents rent because they cannot buy homes.
Despite government efforts to calm the market, incomes and property prices differ greatly.
Analysts fear the market may become unsustainable and many would need help buying a house.
Average House Price in Taiwan
Real estate costs vary by city. Below is a summary of typical housing expenses (to buy) per square meter, according to Numbeo.
Within the city center:
- Taipei: 13,330 USD
- New Taipei: 9,300 USD
- Taichung: 5,800 USD
- Kaohsiung: 4,355 USD
- Hsinchu: 8,855 USD
Outside the city center:
- Taipei: 6,920 USD
- New Taipei: 4,800 USD
- Taichung: 3,700 USD
- Kaohsiung: 2,778 USD
- Hsinchu: 6,361 USD
Can Foreigners Buy Property in Taiwan?
Yes, but with limitations! Taiwan allows foreigners to acquire freehold real estate under strict laws and reciprocity agreements.
Foreign buyers must meet specific standards, making it a tough but realistic venture.
Is Taiwan Real Estate Overpriced?
Comparing local incomes to property prices, Taiwan has some of the highest prices in the world.
In Taipei, the average wage is just around US$1,500 per month, yet the typical property costs about US$700,000.
Many observers contend that because of the extreme overvaluation of the local real estate market, the majority of the population cannot afford to become homeowners.
For individuals who prepare ahead, conduct thorough study, and take an aggressive stance to investing, Taiwan’s real estate market can present intriguing prospects.
The nation’s strong economy and housing demand suggest a high-risk opportunity that comes with high prices too.
If you want to invest in or purchase a property, being knowledgeable, making wise choices, and seeking advice can help you thrive in this changing and challenging market.
Pained by financial indecision?
Adam is an internationally recognised author on financial matters with over 830million answer views on Quora, a widely sold book on Amazon, and a contributor on Forbes.
