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Kaohsiung's unsold new homes near 16,000; Nanzi and Fengshan districts have the most

From Liberty Times · () Chinese

Translated from Chinese, summarized and contextualized by DistantNews.

At a glance

News Official statement Context piece
  • The number of unsold new homes in Taiwan increased to a record high of 112,501 in the fourth quarter of last year.
  • Kaohsiung saw the largest year-on-year increase in unsold new homes, with nearly 16,000 units, particularly in the Nanzi and Fengshan districts.
  • Real estate experts suggest that the surge in unsold inventory in Nanzi, once a hot market due to TSMC's factory, may take time to clear without a loosening of central bank credit controls.

Taiwan's real estate market is grappling with a record number of unsold new homes, with the fourth quarter of last year seeing the figure climb to 112,501 units nationwide. Among the major cities, Kaohsiung reported a significant surge, with its inventory of unsold new constructions approaching 16,000 units.

The number of unsold new homes in Kaohsiung is the highest in the city.

— Reporter Hou Cheng-hsuCaption for a photo showing new housing developments in Nanzi district.

The southern port city experienced the most substantial year-on-year increase in unsold new homes, adding 2,064 units over the past year. This surge is particularly concentrated in the Nanzi and Fengshan districts, each reporting over 2,000 unsold new homes in the last quarter of the year.

In the fourth quarter of last year, the number of unsold new homes in Kaohsiung was the highest, reaching 2,534 units, followed by Fengshan District with 2,146 units.

— Ministry of the Interior statisticsAnalysis of administrative district data for unsold new homes in Kaohsiung.

Industry insiders point to Nanzi district as a prime example of market shifts. Previously a booming area driven by the establishment of a TSMC factory, which attracted investors from central and northern Taiwan and pushed up prices, Nanzi now faces a considerable overhang of new properties. The market cooled significantly after the central bank tightened credit controls, leading to a decline in transactions. Experts believe it may take considerable time to sell off the current inventory in Nanzi, especially if credit policies remain restrictive.

In recent years, due to the benefits of TSMC setting up a factory in Nanzi District, developers have launched many 'TSMC homes,' attracting investors from central and northern Taiwan to secure positions. Transaction volume and housing prices have continued to rise. After the central bank tightened credit controls, investors gradually withdrew, and transaction volume declined significantly. Nanzi District, once a hot spot, has instead become the area with the most unsold new homes. Unless the central bank's policy is loosened, it is estimated that it will take some time to digest these properties.

— Real estate agentExplanation for the high inventory of unsold new homes in Nanzi District.
DistantNews Editorial

Originally published by Liberty Times in Chinese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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