Taipei's new homes hit 'dual highs' in price, pushing first-time buyers out

Taipei City's new housing market is characterized by "dual highs" – elevated unit prices and steep total costs – creating a significant financial burden that places homeownership beyond the reach of average salaried individuals. The latest Cathay Real Estate Index reveals a stark reality: in the second quarter, new projects priced below NT$1 million per ping constituted a mere 3% of the market. Conversely, a substantial 53.7% of new developments were priced at NT$1.3 million per ping or higher.

This trend is further exacerbated by the overall cost of these new homes. The analysis shows that only 1.9% of new Taipei housing projects had a total price below NT$15 million in the second quarter. In contrast, a staggering 60.3% of new developments commanded prices exceeding NT$50 million. This means that, on average, one out of every 1.66 new units sold in Taipei costs over NT$50 million.

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Taipei City's new projects have long entered a stage of very heavy housing price burden with high unit prices and high total prices, making it difficult for ordinary salaried individuals to afford a purchase.

Furthermore, the size of these new units is also shrinking, with only 3.2% of new Taipei homes measuring under 20 ping. The most common size range is between 40 to 50 ping, accounting for approximately 49.4% of new constructions. This indicates a market increasingly geared towards higher-income buyers and those seeking to upgrade, rather than first-time homebuyers.

Industry experts note that the lack of large, undeveloped land parcels in Taipei City often leads to joint development projects. This model, driven by sales profit, inherently creates pressure for high pricing and value creation. The average contract price for new homes in Taipei now stands at NT$43.19 million. Consequently, the required down payment can range from NT$6 million to NT$8 million, a substantial barrier that contributes to Taipei's population outflow, accelerated aging, and gentrification.

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The average contract price for new homes in Taipei City has reached NT$43.19 million, with down payments alone often requiring NT$6 to 8 million in cash.