In the past 10 years, more than half of the more than 20 million residential properties in the North City have been transacted, with less than 10% remaining. (Provided by Yongqing Real Estate Group)
In the past 10 years, affected by multiple factors such as construction costs, market supply and demand, and changes in the overall economic environment, housing prices in Shuangbei have gradually increased, and the main total price band for residential transactions has also been adjusted accordingly. According to real-price registration data, in the past 10 years, less than 10% of residential transactions in Taipei City are below 10 million yuan. The main transaction volume in New Taipei City has shifted from below 10 million yuan to 10 million to 20 million yuan. The focus of residential transactions in the two norths has gradually moved to the higher total price zone, reflecting changes in housing prices and home purchase choices in recent years.
Statistics show that ten years ago, residential transactions in Taipei City were dominated by the total price of less than 20 million yuan, accounting for 59.7% of the overall transaction volume; in the past year, the proportion has dropped to 43.5%, a decrease of 16.2 percentage points, while the proportion of transactions of less than 10 million yuan has dropped from 21.7% to 9.2%, a significant decrease of 12.5 percentage points, showing that residential properties within 10 million yuan in Taipei City are becoming increasingly scarce and the options are limited. In comparison, the proportion of residential transactions between 20 million and 40 million yuan increased from 29.0% to 38.1%, an increase of 9.1 percentage points, becoming the highest proportion of total transaction price in the North City in the past year.
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Chen Jinping, deputy manager of the Yongqing Housing Research and Exhibition Center, analyzed that land supply in Taipei City is scarce, and the base period of housing prices is originally higher than that of other counties and cities. In the past 10 years, overall housing prices have shown an upward trend. Even for mid-century apartments or small and medium-sized residences, the total transaction price of residences with more elite locations and excellent overall functions may exceed 20 million yuan, causing the main force of home buyers in Taipei City to gradually shift to 20 million to 40 million yuan. On the other hand, the proportion of residential transactions between NT$10 million and NT$20 million in the past year still accounted for 34.3%, indicating that in the face of rising home purchase thresholds, some first-time homebuyers and small families may reduce the square footage, increase the age of their houses, or move to outer administrative areas to control the total price within NT$20 million.
The total price band of residential transactions in New Taipei City is also moving upward. Data shows that the proportion of residential transactions below 10 million yuan has dropped from 55.2% to 29.2% in the past 10 years, a decrease of 26.0 percentage points; the proportion of residential transactions between 10 million and 20 million yuan has increased from 35.8% to 48.9%, an increase of 13.1 percentage points. Not only does the increase rank the highest among all price bands, but it has also replaced residential properties below 10 million yuan to become the mainstream of transactions in New Taipei City. In addition, the proportion of residences priced between NT$20 million and NT$30 million also increased from 6.0% to 14.8%, further reflecting the gradual upward shift in the total price structure of residential transactions in New Taipei City.
Chen Jinping pointed out that New Taipei City is close to Taipei City and has long been responsible for the overflow demand for first-time buyers and home replacements from Taipei City. In recent years, as the MRT network and rezoning development have been gradually put in place, and the overall housing prices have risen, the total price of some residences near Taipei City or in areas with mature transportation functions has also increased, resulting in a gradual decrease in the proportion of transactions for residences under 10 million yuan. However, New Taipei City has a vast territory and a relatively diverse selection of housing products and areas. Buyers can still control the total price by adjusting the location, age and square footage of the house. Therefore, in addition to meeting the original local demand, housing priced at NT$10 million to NT$20 million has also attracted some homebuyers who have moved in from Taipei City, and has gradually become the most important transaction price zone in New Taipei City.
Chen Jinping said that the increase in the total transaction price band mainly reflects the changes in market structure caused by the rise in housing prices in recent years and the decrease in the proportion of low-price residential transactions. It does not mean that the income or purchasing power of home buyers has increased simultaneously. Faced with the increase in the total price of a house, it is recommended that people who are interested in buying a house should, in addition to measuring the total price, also take into account the self-prepared amount, loan percentage and monthly repayment ability in the evaluation; if the budget is limited, you can strike a balance between commuting convenience, living space and financial burden by adjusting the area, age and square footage of the house, so as to avoid excessive long-term mortgage pressure in pursuit of a specific location.
If you look at New Taipei City's Linkou, Tamsui, Taipei City Center, Yuanshan and New Taipei City, several cases this year are better than last year. Both pre-sales and existing houses are high. The Taiwan stock market has reached a high of more than 40,000. A lot of money has been made in the stock market. Everyone has different tolerance for the stock market. Some people will transfer funds, which may be transferred to real estate. It is more secure to maintain value. When bank loans are not easy, they turn to buying pre-sale houses. The construction period is relatively long. Consumers pay more attention to the brand and a large base (New Taipei) when considering the total price or small-scale housing. Too much square footage will not make it more attractive. Living functions are a consideration. Don’t buy in a block that is too remote or far away from the MRT station.
Zhang Yingwei, chairman of Baohe Construction, analyzed that despite facing multiple policy controls, the total housing prices in Shuangbei City in the past 10 years still show a significant trend of "ceiling effect and overall floor increase". Data shows that the number of budget projects under 10 million yuan in Taipei City has been reduced to less than 10%, which means that the threshold for entry in Taipei City is extremely high and it has moved towards comprehensive boutique and bourgeoisization. This reflects that under the effects of inflation, high construction costs, and the price spillover of pre-sale housing, home buyers are forced to "trade budget for space" or "trade time for location."
Faced with the structural irreversibility of the total price band, Zhang Yingwei said that when people measure their financial situation and look for good properties, in addition to setting an upper limit of 30% to 35% of the total household income as the monthly mortgage repayment amount to avoid the compression of their quality of life due to mortgage loans, they also need to set aside about 5% to 10% of the total price as working capital for decoration, taxes and home appliances.
In addition, make good use of transportation axes and make good use of stations along the MRT extension line, the third ring and the sixth line (such as Wanda Line, Ring Line) or the Airport MRT Line. Within the budget range of around NT$15 million, look for an area in New Taipei that is within a 10-minute walk from the MRT station and is supported by a mature and mature old business district. Not only will the living functions be safe, but it will also have strong resilience and value preservation during the housing price correction period.
