The housing market is cold, but builders are still building! Kaohsiung’s construction starts surged 118% in October

Kaohsiung reported 1,624 building starts in October, an annual increase of 118.57%. However, the cumulative number of starts in the first ten months of this year was still 7.6% lower than the same period last year. (Photo by reporter Zhang Yayun)

The housing market in Kaohsiung has cooled down, but construction starts have rebounded sharply! According to statistics from Kaohsiung City and the Greater Kaohsiung Real Estate and Construction Development Business Association, 1,624 units reported construction starts in October, an annual increase of 118.57%, and total sales are estimated to reach 21.885 billion yuan. However, the cumulative construction volume in the first 10 months of this year still decreased by 7.6% year-on-year, and the popularity in a single month was in contrast to the trend throughout the year.

According to statistics from the Kaohsiung City and Greater Kaohsiung Real Estate and Construction Development Business Association, a total of 15 cases and 1,624 units were declared for construction in October, an increase of 881 units from 11 cases and 743 units in the same period last year. The total floor area is approximately 180,000 square meters, an annual increase of 101.3%, and the estimated total sales amount is an increase of 121.2% from 9.894 billion yuan in the same period last year.

From the perspective of product planning, there are 806 2-bedroom units and 637 3-bedroom units, a total of 1,443 units, accounting for approximately 88.9% of the total number of units under construction in the building, indicating that 2 to 3-bedroom units are still the main supply of this batch of construction projects.

Among them, the construction project submitted by Tianyu on Chaoyang Road in Nanzi District plans to have 27 floors above ground and 6 floors underground, with a total of 368 households and an estimated total sales of 3.8 billion yuan. It is the case with the largest number of households in October. Xinlongteng, Lane 55, Dashun 2nd Road, Sanmin District, applied for 230 households, with an estimated total sales of 2.8 billion yuan; Fangcaoyao, Chenggong North Road, Qiaotou District, applied for 145 households, with an estimated total sales of 3.6 billion yuan.

The supply reduction is even more obvious. In October, only 25 units were started in Tuotian, a decrease of 51.92% from 52 units in the same period last year. In the first ten months, there were 423 units, a decrease of about 53.1% from 902 units in the same period last year, which is in contrast to the single-month growth of the building in October.

Cai Shaohao, honorary chairman of the Kaohsiung City Surveying Association, analyzed that the sharp increase in the number of housing starts in Kaohsiung in October is not enough to confirm that the housing market has fully recovered. Whether the new supply can be smoothly eliminated in the future, future sales performance still needs to be observed.