President Lai Ching-te’s (賴清德) ambition to transform Taiwan into an artificial intelligence hub along with the AI-boosted stock market may spell out increased housing prices.
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Many potential homeowners may be surprised to know that AI helping the stock market reach record highs may also be the catalyst for increased housing prices.
Taiwan Industry Economics Services Director Liu Pei-chen (劉佩真) says that the semiconductor industry accounting for an increasingly high proportion of domestic GDP, TSMC, and science parks all link back to the housing market, especially in the Liudu and Hsinchu areas.
Housing analyst Hsu Chia-hsin (徐佳馨) notes that the impact may be more prevalent for those with pre-existing loans and those purchasing multiple homes in the same community.
Hsu says there is potential for people with multiple homes to take advantage of tax loopholes by registering in counties or cities with lower tax rates, and warns that the Finance Ministry is capable of checking whether or not these residencies are consistent with what’s in the household registration system.
The Central Bank may also lower the threshold for what’s considered “luxury homes,” restrict loans, and enact measures that could close up current loopholes.
Whether or not heightened housing prices can be curbed depends on the effectiveness of the measures brought about by the Central Bank.