Northern Taiwan housing prices soar, 4-digit per ping prices nearly extinct

The housing market in northern Taiwan is experiencing a significant price surge, with new developments in New Taipei City, Taoyuan, and Hsinchu counties and cities rapidly moving beyond the 400,000 New Taiwan dollar per ping threshold. In the second quarter, the proportion of new units priced below 500,000 NTD per ping was already scarce, standing at approximately 11.1% in New Taipei, 8.9% in Taoyuan, and a mere 2.6% in Hsinchu.

Industry experts attribute this trend to escalating construction and land costs, which are inflating new home prices. Huang Shu-wei, director of Colliers International's Property Owner Services, noted that while Taipei City's housing affordability ratio is around 64%, pushing buyers towards New Taipei (55%), Taoyuan (36%), and even Keelung (25%), these areas are also seeing accelerated price increases. Factors like "railway economy" and TPASS subsidies are further enhancing the attractiveness and price competitiveness of these regions.

Analysis of new project price distributions reveals that in New Taipei City, a substantial 64.3% of new units are priced above 700,000 NTD per ping. Taoyuan sees 91.1% of new projects priced above 500,000 NTD per ping, while Hsinchu county and city have a striking 82.1% of new developments priced above 600,000 NTD per ping. This indicates that the 400,000 NTD per ping mark is becoming increasingly rare in these northern areas.

In contrast, the southern cities of Taichung, Tainan, and Kaohsiung still offer more accessible price points. In the second quarter, Tainan and Kaohsiung had a higher percentage of new units priced below 400,000 NTD per ping, at approximately 47% and 33.8% respectively. Taichung also saw 35.6% of its new projects priced below 500,000 NTD per ping. However, real estate analysts caution that housing price corrections are slow, particularly in prime urban areas, making homeownership a significant burden for many. They suggest that prospective buyers seeking properties below 400,000 NTD per ping might find opportunities along new MRT lines or in less developed areas with future growth potential, suitable for long-term owner-occupiers.

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Observing the housing loan burden ratio in Taipei, New Taipei, and Taoyuan, Taipei is around 64%, thus squeezing buyers to move outwards, shifting to New Taipei at 55%, Taoyuan at 36%, and even Keelung at 25%.