Taipei Taiwan Real Estate
Money from mainland China has helped drive up home prices in Taipei by nearly 200 percent over the past decade, according to real estate agents. Luxury real estate in Taipei has seen a surge in buyer interest in recent years as a large number of wealthy businessmen have reinvested and taken advantage of the movement restrictions resulting from Taiwan's exemplary handling of Covid 19. According to data from property developer Cathay Real Estate, the average house price in Taiwan has risen by 34% since the beginning of the year.
In Taipei City, the share of homes is lower at 75.2%, but the vacancy rate of 13.4% is still unusually high. Chinese investors are boosting demand for high-quality homes and driving office vacancy rates to record lows in Taipei. Many real estate investments are made through transnational corporations, including Chinese shareholders, making it difficult to determine the real value of real estate in Taiwan and the potential impact on real estate prices. With investors expecting Chinese companies to be allowed to open branches and buy real estate in Taiwan, tai-tai houses have become a tool of speculation.
Perhaps more than any other nation, Taiwan will show support and lay out the welcome mat for Hong Kong residents who want to leave the territory. Among the places where mainland investors have established overseas subsidiaries before entering Taiwan are Taiwan's capital Taipei, the capital of Taiwan City, and the island's largest city, Kaohsiung, the agents say. One such place is Taiwan, whose similar language, customs, and geographical proximity have already made it an attractive destination for Hong Kong exiles and their families.
In the US-China trade war, Chinese-based Taiwanese companies have moved operations to Taiwan to avoid US tariffs. Last month, Beijing warned airlines to list "Taiwan and China" on their websites, not just Taiwan.
While the sharp rise in real estate prices was most evident in Taipei, the capital of Taiwan, it has spread elsewhere. Taipei is the second most expensive city in the country after Hong Kong in terms of price-to-income ratios, and the third most expensive in China, according to data from the National Development and Reform Commission (NDRC). Tai Taiwan has seen strong demand for homes as some of the country's largest developers have bought land and expanded their pipelines.
Taipei itself is relatively small, 270 square kilometers belong to the Yangmingshan National Park. However, more than half of Taiwan's population is concentrated in the cities of New Taipei and Taichung, two of the country's largest cities. Overall, the New Taiwan government says the city's mortgage burden is 40% higher than the national average of 30%. Housing is more affordable in other cities, too, with mortgage burdens at 40% of income in Taicung and 30-40% in Kaohsiung.
These rooms are located in the NanShiJao and Shida Gonguan neighborhoods, but many of them are also located in downtown Taiwan. If you want to rent a room like this in Taipei, the price of a one-bedroom apartment can go up to about $400 to $600 a month.
An upscale apartment, represented by Taiwan Sotheby's International Realty, measuring 1,000 square meters and located a stone's throw from the presidential palace, for example, costs NT 19 million. Another property in New Taipei City is valued at NT $60 million, and properties in other parts of Taiwan are valued at NT $40 million each.
If you are new to the city, this article is about learning about the cost of living in Taipei. The average Hong Kong migrant may find Taiwan's property prices relatively cheap, but he or she may find it difficult to live in the world's most expansive housing markets, even though the cost of renting a house in Taiwan is fairly affordable.
For long-term stays in Taiwan, find out how to apply for an ARC (Alien Residence Certificate) in Taipei. You can also read our guide to housing costs in Hong Kong and Taiwan's housing markets. Unfortunately, there are not many cheaper cities outside of New Taipei, but it is an option for people who work inTaiwan and want more space and money.
If you are looking to rent or buy an apartment or house in Taiwan, real estate agents can be very useful if you do not speak Mandarin Chinese or have a friend to help you find it. You will have at least one broker who has a decent command of English, and some schools in Taipei will offer assistance if you find it relatively easy to find an apartment in Taiwan. In addition, International Real Estate Digest provides an excellent guide to Taiwan's real estate market and Hong Kong house prices.
One wild card factor that could also affect real estate prices is the number of Taiwanese citizens returning from doing business in China and HK. Another factor is that Taiwan Ratings Corp. puts the house price-to-income ratio in Taipei at 15: 1. This is because local Taiwanese are unable to buy property in Taipei due to the high cost of living and lack of affordable housing.