Taiwan's housing market sees June rebound but H1 2026 remains sluggish; Kaohsiung land auction shows moderate success

The Taiwanese property market showed signs of a June rebound, with six major cities recording 18,306 building transfer transactions, an 11.3% increase from May. This uptick was largely attributed to a surge in new home completions and a general stabilization of buyer confidence, supported by the robust performance of the AI industry and steady economic fundamentals. Taoyuan and New Taipei City led the growth, with Taoyuan experiencing a significant 35.0% month-on-month increase and New Taipei a 20.0% rise, both reaching their highest transaction volumes for the year.

Despite the June improvement, the overall market sentiment for the first half of 2026 remained subdued. The cumulative number of property transfers across the six major cities reached 97,438 units, marking the second-lowest figure on record since 1999, surpassed only by 2016. This data highlights a persistent market consolidation, with sales volume remaining at a low ebb.

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The property market transaction and registration typically have a time lag of about one month. June's building transfer volume reflects market performance from May to early June. Benefiting from the continuous growth driven by the AI industry's export expansion, the domestic economic fundamentals remain stable, and public home-buying confidence has recovered.

In Kaohsiung, the second quarter saw the city's land administration bureau auction six development plots in key areas like Xiaogang, Nanzi, and Renwu. Out of the six plots offered, four were successfully sold, achieving a bid success rate of 66.7%. Notably, a 972.73 ping (approximately 3,214 square meters) commercial land parcel near Xiaogang Forest Park was acquired by Feng Ju Investment for NT$537 million, at a price of approximately NT$552,100 per ping. Another residential plot in Renwu also saw competitive bidding.

The land auction results indicate continued interest in strategically located development sites, particularly those with potential for commercial or residential use and proximity to amenities and transportation hubs. The success rate suggests a cautious but present demand from developers for quality land parcels, especially in areas poised for future growth.

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Among the six major metropolitan areas, Taoyuan City and New Taipei City saw their transaction volumes increase by more than 20%, growing by 35.0% and 20.0% respectively compared to May, showing the most outstanding performance. Furthermore, the transaction volumes in both metropolitan areas in June reached the highest single-month volume of the year.