New Taipei City housing market transaction volume and prices rebounded simultaneously in the second quarter

New Taipei City's real estate market transaction volume and prices rebounded in the second quarter of this year. The picture shows the rezoning of Jiangzicui in Banqiao. (Picture provided by Lands Bureau)

[Reporter Lai Xiaotong/New Taipei Report] The New Taipei City Government today released the real estate market quarterly report for the second quarter of 2015. It observed the performance of the existing and pre-sold housing markets. After bidding farewell to the traditional off-season, the accumulated rigid demand for owner-occupancy and first-time purchasers was concentrated and released. A number of pre-sale housing projects in Shangyanhuang District have been intensively sold, boosting average house prices and transaction momentum, driving a simultaneous rebound in transaction volume and prices in the housing market this quarter. Among them, existing housing buildings have become the first choice for owner-occupied buyers due to their good living functions and high CP values.

Xiao Xiangjun, chief of the Land Price Section of the New Taipei City Land Bureau, said that there are two core factors affecting the rebound in housing market prices this quarter. The first is the rebound in elite old urban areas and the enthusiasm for project promotion. Compared with the previous model of new development and rezoning leading the increase, the main driving force for this quarter's rebound comes from elite old urban areas with mature living functions. New projects are expected to be launched. Nearly 70% of the sales are concentrated in prime areas such as Banqiao, Zhonghe, Sanchong and Xindian, attracting rigid buyers; secondly, the opening of the Tamjiang Bridge and MRT Sanying Line coincides with the opening of the two major transportation constructions, which greatly shortens the commuting time to and from the region, supporting housing prices in areas such as Bali, Tamsui, Sanxia and Yingge.

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From the perspective of administrative districts, both prices and transaction volume in Banqiao District increased this quarter. Due to the concentration of pre-sales transactions in surrounding indicators such as MRT Yadong Hospital Station, Fuzhong Station, and Jiangzicui Station, the price in a single quarter increased by 11.3% from 671,000 yuan in the previous quarter to 747,000 yuan per square meter. The transaction volume increased by 10.8% to 828 transactions, both ranking the highest in the city.

In addition, the pre-sale houses in the Sanchong District performed well, with 486 transactions, the highest in New Taipei. Among them, the index new projects located in the second zone of the MRT Sanchong Station Living Circle were sold in a single quarter, making it the single pre-sale construction project transaction volume champion this season; Tamsui District, with the opening of the Tamkang Bridge to traffic, relied on the advantage of low total price and strong rigid demand. This quarter, it continued to top the list of existing housing buildings with 447 transactions.

In terms of living area, Banqiao District's post-community living area won the championship in New Taipei City's pre-sale housing prices with an average unit price of 1.144 million yuan per square meter, driven by the concentrated transactions of new projects. The MRT Sanchong Station living area's transaction volume hit 138 transactions, and the Xinzhuang urban area living area won the championship with 98 transactions for existing houses.

Xiao Xiangjun pointed out that the overall housing market transaction volume this quarter reached 8,674, with an average transaction price of 598,000 yuan per square meter, an increase of 7.9% from the previous quarter. Currently, there is a significant price difference of 234,000 yuan per square meter between pre-sale houses (average price of 755,000 yuan) and existing housing buildings (average price of 521,000 yuan) in New Taipei City. Existing housing buildings with mature functions have become a rational choice for current owner-occupiers.

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