Taiwan sees surge in new building registrations amid sluggish property market

Taiwan's property market is experiencing a surge in completed new constructions, even as actual buying activity remains subdued. Last year, the number of newly registered buildings nationwide reached 176,700 units, an 8.4% increase from the previous year and a substantial 44.48% jump compared to a decade ago. Since 2024, the number of new building registrations has exceeded 150,000 units for two consecutive years.

Experts predict that 2025 will mark a peak in handover volumes, with 2026 still showing significant, though slightly lower, numbers. Despite the central bank's minor easing of selective credit controls, market transactions have been slow. This is partly attributed to funds shifting towards the stock market, leading to an approximate 3.5% year-on-year decrease in property sales in the six major cities, with Taichung experiencing the most severe decline of over 10%. However, a gradual recovery in transaction volume is anticipated for the second half of the year.

Last year's total sales volume of 261,300 units reflects the market's sluggishness. Some analysts suggest that the actual buying sentiment might be even more challenging than the data indicates, as new construction completions contributed to the sales figures. Historically, significant volume contractions have often been followed by rebounds in the subsequent year, a trend observed in previous cycles. Signs of a bottoming out and recovery in buying activity have appeared since the central bank slightly eased mortgage restrictions for second-home purchases in the first quarter.

Taoyuan has emerged as a leader in new building registrations, with 30,600 units last year, surpassing both New Taipei City and Taichung. This growth, a 23.4% increase year-on-year, is the highest among the six major cities. Taoyuan's attractiveness to "light migrants" continues, fueled by the high housing costs in Taipei and New Taipei, coupled with the benefits of the "railway economy" and ongoing infrastructure development. In contrast, Hsinchu City has seen a consecutive two-year decline of 20% in new registrations, highlighting the divergent trends influenced by industry, stock market wealth effects, and supply conditions across different regions.