Taipei, New Taipei Housing Prices Rise in July Amid Subsidy Rush

Taipei and New Taipei City's housing markets experienced a surge in both volume and prices in July, largely propelled by the final push of the "Qing'an 2.0" housing subsidy program. The program's upcoming changes in total price and age requirements for the "Qing'an 3.0" version prompted many eligible first-time homebuyers to finalize their transactions before the July deadline, providing a short-term boost to market activity.

He Shichang, CEO of the Xinchuan Real Estate Think Tank, noted that the impending expiration of "Qing'an 2.0" created a sense of urgency for some first-time buyers, sustaining market momentum. However, he cautioned that the continuation of this buying trend hinges on the loan conditions and financial burdens associated with "Qing'an 3.0" after its implementation.

Beyond first-time buyers, a notable shift in capital flow has emerged in the Taipei and New Taipei City property markets. A small segment of high-net-worth individuals has begun allocating a portion of their stock market gains into real estate for "asset balancing." He described this move as "turning money into peace of mind," as these investors prioritize long-term asset allocation over short-term price fluctuations, thereby providing a stabilizing effect on market prices.

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The expiration of Qing'an 2.0 has become an important factor for some eligible first-time buyers to enter the market under time pressure, thus maintaining a certain transaction momentum in the Taipei and New Taipei City markets in July.

Regionally, Taipei's housing price index saw a significant year-on-year increase of 6.29% in July, outpacing New Taipei City's 2.83%. This divergence suggests that the market's strength is not uniform across the metropolitan area, with Taipei's prices reaching new historical highs while New Taipei City remains in a recovery phase. Market performance is influenced by regional development, product mix, and the composition of the buyer pool.

Currently, the market is supported by both the final wave of "Qing'an 2.0" buyers and the asset allocation strategies of high-net-worth individuals. However, as policy environments evolve, the sustainability of current price and volume levels will depend on whether a gap emerges in first-time buyer demand and if capital continues to flow from other financial assets into real estate.

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For these high-net-worth individuals, shifting some stock market profits to real estate is, to some extent, 'turning money into peace of mind.'