The home price indexes in Taipei and New Taipei cities, the two most watched property markets in Taiwan, fell in the fourth quarter of last year from the previous quarter. That’s according to statistics released by Sinyi Realty Inc., one of Taiwan’s leading property sales agencies.
Sinyi said that the fall in home prices in the greater Taipei area reflected concerns that the government will come up with more measures to rein in high flying prices.
Analysts said that investors were most concerned about the government’s push for a tax reform that would require them to pay a much higher capital gains tax when they sell their properties. They also said that political uncertainty resulting from the local government elections last November prevented home buyers from entering the property market as well.
Sinyi said that the home price index in Taipei retreated to around a level seen in the third quarter of 2013, while for New Taipei, the index started trending lower after home prices there hit recent highs in the second and third quarters of last year.