Taipei Pre-Sale Contract Cancellations Surge 30%, Mid-to-High Price Ranges Hit Hardest

Taipei's pre-sale housing market experienced a significant slowdown in the second quarter, with a nearly 50% drop in new project launches compared to the previous quarter. The city's Department of Land Affairs reported 20 new pre-sale projects, a 23.08% decrease, and a total of 1,254 units, down 44.73%.

Adding to the market's caution, contract cancellations for pre-sale homes surged. The city recorded 47 contract terminations in the second quarter, an 11.9% increase from the previous quarter and a substantial 30.56% rise from the same period last year. Year-to-date, 155 cancellations have been reported, up 7.64% from the prior period and 34.78% from last year.

The data reveals that pre-sale contracts valued between NT$20 million and NT$40 million were the most frequently cancelled, each accounting for 17.98% of cancellations. Contracts in the NT$40 million to NT$50 million range also saw a notable number of cancellations.

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The market is returning to rationality, and developers' attitudes toward launching new projects are becoming more conservative.

Industry leaders attribute the market shift to a return to rationality. Zhang Lirong, chairwoman of the Taipei Real Estate Development and Sales Association, stated that developers are adopting a more conservative approach, prioritizing smaller residential communities (under 80 units) to ensure faster sales and efficient capital use. This strategy reflects a focus on risk management over large-scale developments.

Regarding contract resales, since the government allowed conditional resales in July 2023, Taipei has approved 34 such transfers by the end of the second quarter. The primary reasons cited were severe illness of the buyer or family members, and transfers among joint buyers. Beitou District saw the highest number of approved resales with eight cases.

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The resale system balances management with public needs, demonstrating the policy's humanity.