Inheritance and Gift Property Transfers Hit 10-Year High Last Year

Taiwan's property market has seen a significant shift, with transactions involving inheritance and gifts reaching a decade-high in 2023. Sales transactions, for the first time in ten years, dipped below 60% of all property ownership registrations, accounting for 57.9%. Meanwhile, inheritance registrations climbed to 17%, and gift registrations reached 11.7%.

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Because housing prices are rising steadily, the average age of first-time homebuyers is being postponed to over 40 years old, which has also led to changes in the structure of the housing market in recent years.

This trend contrasts sharply with previous years. Before 2024, sales transactions consistently exceeded 60%, peaking at 69.4% in 2021 when inheritance and gift transactions were at their lowest. The recent decline in sales is linked to government policies aimed at curbing housing prices, particularly the central bank's seventh round of credit controls implemented in September 2024.

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Although the property market transaction volume has declined, the number of properties acquired through inheritance has increased year by year. The main reason is the aging population, and some families in the early years may have had the concept of buying a home for self-use or investment.

Industry experts point to several factors driving this change. Huang Shu-wei, director at Colliers International, notes that rising housing prices have pushed the average age of first-time homebuyers past 40. He also observes a decrease in demand for upgrading homes due to smaller family sizes and a lower propensity for marriage and childbirth. Meanwhile, Tseng Ching-te, a project manager at Sinyi Realty, attributes the rise in inherited properties to Taiwan's aging population. As the post-war baby boomer generation ages, more properties are being passed down, a trend expected to continue. However, he adds that with multiple heirs, properties are often sold to divide the proceeds, influencing the market dynamics.

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Due to the increasing number of properties acquired through inheritance, waiting for a house and not buying one might seem feasible at first glance, but the actual situation may be quite complex. In most cases, there is usually more than one heir, and inherited properties are often jointly owned.