| dc.description.abstract | Analysis of New and Existing Home Market and Industry in Taoyuan County
Abstract
As the Government continues to set forth new public construction projects related to and benefiting the Taoyuan area, such as the Wu-Yang elevated highways, Taoyuan Aviation City and the Airport MRT which is near completion, and the Taipei City and New Taipei City real estate prices have over and over reached new heights, the city dwellers who cannot afford the urban habitation are looking to the neighboring Taoyuan County for their housing choice. This bigger environment as a whole has led to the booming of the Taoyuan real estate market.
The research, with a SCP framework, conducted case studies on the new and existing home market and industry in Taoyuan area. Through the analysis of the public policies, the supply elements of new and existing homes and the motivation of consumers’ demand, the future trend of the new and existing home market in Taoyuan was further discussed.
The research results show that in this massive land release resulted from the land redistricting in the Taoyuan area, construction builders have ridden this wave of housing market highs to procure lands for residential building. Meanwhile, real estate investors are also coveting for the low mortgage rate to significantly reduce their holding cost, and the property tax which has long been much lower than what it should have been for the real housing market prices has made the real estate cost extremely low, offering a hotbed of tax avoidance. This is the cause as a whole leading to the skyrocketed housing prices. The landlords are also taking this ride of housing craze to sell their lands, and thus the lands are dwindling and becoming more and more expensive. As the builders and buyers are rushing into the housing frenzy, the speculative venture seems never ending and so the housing prices remain record high.
With the support of the financial leverage, the housing prices are expected to remain high for some time. However, the economic growth of Taiwan has been slowing down, and the average salary has come to a stall. Furthermore, the urban housing cost is way beyond the suburban housing structure, driving city dwellers to move south to the Taoyuan area and to raise its housing prices. If Taiwan cannot upgrade its industries to pull itself up from the low economic cycles, people’s purchasing power won’t be increased and the population growth will be like an inverted pyramid trend; then, we’d probably need to worry about a housing bubble. This is what the Taiwan housing market should really be concerned. | en_US |