Taipei: Transactions of residential and commercial properties in Taiwan's six largest cities dipped to an eight-year low for April, and market analysts said large investors moved funds to the booming local stock market.
According to Focus Taiwan, statistics released by the governments of the six cities-Taipei, New Taipei, Taoyuan, Taichung, Tainan, and Kaohsiung-on Monday showed that transactions of homes, shops, and offices stood at 15,685 units in April. This figure represents a decrease of 14.2 percent from a month earlier and a decline of 7.1 percent from a year earlier.
In Taipei, the most closely watched market in Taiwan, housing transactions fell to 1,981 units in April, marking a 17.9 percent decrease from a month earlier and a 6.7 percent drop from a year earlier. Meanwhile, sales in New Taipei, Taiwan's most populated city, dropped to 3,504 units, which is down 20.7 percent from a month earlier and down 7.9 percent from a year earlier.
Property transactions in Taoyuan totaled 2,894 units in April, showing a 15.3 percent decrease from March and a 16.6 percent decline from a year earlier. Sales in Taichung stood at 3,142 units, reflecting a 1.7 percent decrease from a year earlier and a 2 percent drop from a month earlier.
Additionally, transactions in Tainan reached 1,585 units in April, down 13.7 percent from a month earlier and down 10.4 percent from a year earlier. Kaohsiung was the only city that reported a year-on-year increase of 3 percent in transactions, totaling 2,579 units, although sales still fell 14.1 percent from a month earlier.
The statistics further revealed that in the first four months of this year, transactions of homes, shops, and offices fell 3.4 percent from a year earlier to 62,688 units, marking the second-lowest since the tallies began in 1999.
Charlene Chang, a section chief at Taiwan Realty Enterprise, noted that many investors have shifted funds to the local stock market, where the benchmark index briefly topped the 40,000-point mark in April. However, she suggested that when the stock market consolidates after hitting highs, it is possible for investors to redirect their funds back to the home market to diversify their investment portfolios.
Tseng Ching-der, a research manager with Sinyi Realty Inc., expressed optimism toward the home market. He mentioned that with the central bank's easing of selective credit controls in March on the second home of an individual buyer, some deferred buying is emerging, and such interest could continue.