New Homes for Sale Hit Record High in Taiwan, With One-Third Under a Year Old

Taiwan's market for new homes for sale has reached an eight-year high, with 112,500 units available in the fourth quarter of last year, according to the Ministry of the Interior's latest report on vacant and for-sale housing.

Of these available properties, the largest segment consists of homes built within the past year, totaling nearly 35,200 units. This means that approximately 31.29% of new homes on the market are less than 12 months old, with one in every 3.2 available new homes fitting this description.

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The number of unsold homes in New Taipei City has been gradually decreasing since the first quarter of 2024. In contrast, Kaohsiung's unsold inventory surpassed 10,000 units in the third quarter of 2023 and has now reached nearly 16,000 units. We need to watch for developers facing pressure to lower prices due to excessive inventory, potentially leading to price disruptions.

Further analysis reveals that homes less than two years old account for nearly 58,200 units, representing about 51.73% of the total for-sale inventory. Homes aged between four and five years also represent a notable portion, with nearly 14,800 units, or about 13.15% of the total.

Real estate experts suggest that the high number of new homes on the market, particularly those less than two years old, is a result of a cooling property market. While 2023 and 2024 saw robust market activity, recent sluggishness has led to a buildup of unsold inventory. This trend is observed across major cities, with Kaohsiung showing the highest proportion of new homes (over 41%) built within the last year. The city also leads in the sheer number of new homes for sale, followed by Taoyuan and Taichung.

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At the end of last year, the number of newly issued occupancy permits remained high. However, upon completion, these homes encountered a sluggish property market with low buying interest. Developers were generally unwilling to lower prices to secure sales, resulting in a high number and proportion of new homes for sale that are less than one year old.