<Real Estate> Taipei City's August Housing Transaction Volume Up 2.8% Year-on-Year, Showing Resilience – Shilin and Beitou Stand Out in Buyer Demand

Su Jin-cheng, chairman of the Taipei Real Estate Brokers Association, stated on the 11th that Taipei recorded 1,752 building transfers in August, a 25.5% decrease from the previous month but a 2.8% increase compared to the same period last year. Under selective credit controls suppressing market activity, Taiwan’s overall housing market remains weak. However, as liquidity recedes, previously inflated areas are reverting to realistic levels, while Taipei’s core market shows stronger resilience with relatively limited correction.

Among districts, Shilin and Beitou performed exceptionally well, posting monthly increases of 12.4% and 16.6% respectively—the only two districts in the city to achieve double-digit growth. Chairman Su noted that demand in these two districts has been driven by the 'NVIDIA effect,' combined with rare large-scale land supply in newly developed zones across Taipei. This creates a dual support of 'thematic demand and imaginative supply,' sustaining developer confidence and price momentum.

Nangang recorded only 66 transactions in August, remaining below 100 for consecutive months, signaling mounting volume pressure. Su explained that both new and existing homes in Nangang are affected by high prices, credit controls, and tighter loan conditions, slowing buyer entry. Wenshan District, once a top choice for civil servants and owner-occupiers, has seen prices rise from the NT$6 million range pre-pandemic to firmly in the NT$9 million range. This has pushed owner-occupier affordability to its limit and shifted external demand from the Brown Line to the Green Line, posing the greatest challenge to local market vitality.

Daan District saw the most significant volume contraction in August, with only 165 transactions—a 45.9% monthly drop and a 27.6% annual decline. Chairman Su pointed out that new developments in Daan are increasingly challenging the NT$200,000-per-ping mark. Amid high unit prices and stock market volatility, owner-occupier products are caught between luxury thresholds, while investment-grade properties offer insufficient returns. As a result, high-net-worth individuals are rebalancing their portfolios, and momentum for chasing higher prices has clearly faded.

Looking ahead to whether the Central Bank will adjust credit controls in September and the potential impact, Su believes policy easing won’t be a savior for Taipei’s housing market. While relaxing loan-to-value ratios or purchase restrictions could improve funding conditions, Taipei’s already high home prices and mortgage burden rates mean such measures cannot resolve the psychological stress and financial risks associated with affordability. He advises sellers not to expect election-driven rallies or policy loosening, urging prices to return to market fundamentals. For buyers, this period of high-price stagnation and regional divergence offers a rare opportunity to strategically position assets—targeting well-located, reasonably priced properties and seizing the window for negotiation and entry.