<Property> Taiwan's Stock Market Heats Up, But Luxury Housing Transactions Cool Down – Waterfront Mansion 'Karuisawa' Sees Declining Unit Prices

Just like Taiwan’s stock market, real estate transactions remain active—but the luxury housing segment is facing increasing competition. According to Taiwan’s Real Price Registry, a 9th-floor unit (118.37 ping, including two parking spaces) at the prestigious Dazhi waterfront mansion 'Karuisawa' was purchased in June 2024 by a new owner without financing for a total of NT$149.49 million, translating to a unit price of NT$1.528 million per ping—setting a new community low.

In 2025, three units in the Karuisawa complex were sold at around NT$1.55 million per ping. However, this recent mid-level floor transaction has further driven prices down. Real estate agents suggest this trend reflects deliberate price concessions to close deals.

Zhang Xulan, Executive Director of Taiwan House Group’s Trend Center, analyzed that Karuisawa is a well-known waterfront luxury development in Dazhi. Excluding special transactions, there have been 11 recorded sales in the Real Price Registry. In 2015, a 5th-floor unit reached over NT$2.09 million per ping when factoring in parking, and in 2021, a top-floor 14th-floor unit sold for approximately NT$2 million per ping. However, the building is now 23 years old, and the recently traded unit is not in the first row facing the waterfront, resulting in a valuation gap. Additionally, many older properties require interior renovations after reaching the 20-year mark, and original owners may consider downsizing due to retirement or family changes—creating more opportunities for discounted sales.

Meanwhile, the luxury residence 'Diamond Power Taipei Star' in Da’an District saw its 19th-floor unit sell in July 2024 for NT$286.71 million, or NT$1.9 million per ping. In June, a 20th-floor unit sold for NT$293.82 million, or NT$1.955 million per ping. A February transaction on the 17th floor also achieved NT$1.9 million per ping. There are currently 15 disclosed transactions, with the most recent three ranging between NT$1.9 million and NT$1.955 million per ping. This contrasts sharply with pre-2023 levels, where nearly every unit sold above NT$2 million per ping—suggesting developers have shifted toward a discount-driven sales strategy.

Chen Dingzhong, Senior Manager at Taiwan House Group’s Trend Center, noted that 'Diamond Power Taipei Star' is a flagship urban renewal luxury project in Taipei City, attracting affluent buyers thanks to its prime location and superior amenities. It previously maintained stable pricing above NT$2 million per ping. However, given that the 2024 real estate market remains in a consolidation phase, high-value mortgages are capped at 30% under credit regulations. With abundant choices in the luxury market and fierce competition, coupled with a relatively large remaining inventory at this project, developers are willing to offer discounts to reduce holding costs such as property taxes. As a result, buyers now have the opportunity to acquire higher-quality units at comparatively lower prices.