Trump's tariff policies have severely impacted Taiwan's housing market: In April 2025, the transaction volumes in six major cities saw a dramatic decline, with Kaohsiung seeing a year-on-year drop of more than 50%.

In April 2025, Taiwan's real estate market was significantly impacted due to the announcement by U.S. President Trump of a new tariff policy. This policy led to fluctuations in global stock markets, and the transaction volume in Taiwan's real estate market declined in six major cities: a year-on-year decrease of 46% in Taipei City, 47% in New Taipei City, 50.9% in Taoyuan City, 28.2% in Taichung City, 38.6% in Tainan City, and 55.6% in Kaohsiung City. The chain reaction from this international economic policy profoundly affected the pace of transactions and the market atmosphere in Taiwan's real estate sector.

Tariff Policy Triggers Global Stock Market Crash, Taiwan's Real Estate Market Simultaneously Hit

In early April 2025, President Trump once again raised the banner of "Made in America First" by announcing high tariffs on exports from multiple countries, with Taiwanese export products being subjected to tariffs as high as 32%. This move not only escalated U.S.-China trade tensions but also quickly triggered a global stock market plunge. Taiwan's stock market was also affected, with investor confidence shaken and liquidity tightening, which in turn affected the real estate market.

Hsu Chia-Hsin, Executive Director of the Planning and Research Office of Sinyi Realty, pointed out, "Trump's move scared off potential buyers." She stated that the market had originally expected April to continue the trading momentum of March, but the sudden international political and economic turmoil made already cautious buyers even more conservative, leading to a sharp decline in transaction volume.

Transaction Volume in Six Major Cities Declines Across the Board, Annual Decrease is Staggering

According to statistics from Sinyi Realty and Chinatrust Real Estate, the transaction volume in the real estate markets of six major cities in April 2025 declined across the board compared to the same period last year, with the following decreases:

• Taipei City: Year-on-year decrease of 46.0%, month-on-month decrease of 32.1%
• New Taipei City: Year-on-year decrease of 47.0%, month-on-month decrease of 30.4%
• Taoyuan City: Year-on-year decrease of 50.9%, month-on-month decrease of 10.4%
• Taichung City: Year-on-year decrease of 28.2%, month-on-month decrease of 11.3%
• Tainan City: Year-on-year decrease of 38.6%, month-on-month decrease of 18.4%
• Kaohsiung City: Year-on-year decrease of 55.6%, month-on-month decrease of 26.5%

Overall, the transaction volume in Taiwan decreased by 45.4% annually and 22.9% monthly. Chang Shih-Tsung, General Manager of Chinatrust Real Estate, noted that compared to the home-buying boom spurred by the "New Green Home 2.0" policy in the same period in 2024, the market atmosphere in April this year has clearly cooled, with consumer confidence severely disrupted.

Banking Loans and Financial Pressures Intensify Market Hesitation

In addition to international political and economic factors, domestic financial pressures have also become another straw that breaks the camel's back for the real estate market. With tax season approaching in May, some homebuyers are choosing to prioritize adjusting their financial allocations and delaying their entry into the market. Hsu Chia-Hsin noted that although current bank loan conditions are not as stringent as last year, loan issues remain the biggest variable in transactions, with the number of properties for sale gradually increasing, indicating that the pressure of supply-demand imbalance is accumulating.

Lai Chih-Chang, Public Relations Director of the Planning and Research Office of Evertrust Rehouse, also pointed out that although there have been sporadic cases of price reductions in the market recently, the extent is not significant, indicating that homeowners still maintain a firm attitude on prices. However, against the backdrop of continued stock market volatility and financial controls, homebuyers' attitudes are becoming more cautious, making it difficult for the market to see a strong rebound.

Real Estate Market Enters Consolidation Phase, Buyer's Market Takes Shape

Chang Shih-Tsung stated that the real estate market has now entered a clear consolidation phase, with the market balance gradually tilting towards buyers. For homeowners with a need for capital recovery, adapting to market changes and adjusting sale prices in a timely manner will help shorten the sales cycle and accelerate transactions. He suggested that buyers should focus on personal housing needs and choose areas with good amenities and development potential to ensure asset value stability.

Additionally, according to a report by Wealth Weekly, Trump's tariff policy's impact on Taiwan's economy is not limited to the export industry and may lead to a GDP downgrade of 1% to 1.5%. Weak economic fundamentals will further suppress real estate demand, especially as traditional export industries are severely affected, impacting employment and consumer confidence, thereby dragging down the residential and commercial office markets.

Developers' Financial Pressure Emerges, Market Risk Increases

Under the dual pressure of financial tightening and sluggish sales, the financial risk of developers is also gradually emerging. According to a report by Wealth Weekly, some developers have used checks from pre-sale home buyers as additional collateral for unsecured corporate bonds to raise funds externally. Banks are highly vigilant about such operations, viewing them as high-risk targets and further tightening financing conditions. Market insiders warn that if confidence collapses, a domino effect of stalled construction projects may occur, causing deeper impacts on the real estate market.

References

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