The six major cities in Taiwan experienced a significant drop in the volume of real estate transactions in April due to stock market volatility and loan restrictions, resulting in a 26.3% decrease compared to the previous year.

In April 2025, the real estate transaction volume in Taiwan's six municipalities declined, with a total of 16,876 properties sold and transferred, down 7.3% from March and 26.3% from the same period last year, hitting a seven-year low. Tainan City experienced a 14.1% increase in transactions due to new project completions, but the overall real estate market was affected by stock market fluctuations, loan restrictions, and international political and economic uncertainties, resulting in a cooling of buyer interest. Real estate agents noted that the market is in a strong wait-and-see mode, with a lack of buyer confidence and diminished transaction activity.

Yearly Decline in Transactions Across All Six Major Cities, with Tainan's Short-term Rebound as the Only Highlight

According to data released by the land administration bureaus of the six major cities, the number of building sales transfers in April 2025 is as follows:

• Taipei City: 2,123 buildings, a monthly decrease of 11.6% and a yearly decrease of 14.9%
• New Taipei City: 3,803 buildings, a monthly increase of 1.8% and a yearly decrease of 36.6%
• Taoyuan City: 3,472 buildings, a monthly increase of 2.0% and a yearly decrease of 6.4%
• Taichung City: 3,206 buildings, a monthly decrease of 21.7% and a yearly decrease of 21.3%
• Tainan City: 1,768 buildings, a monthly increase of 14.1% and a yearly decrease of 27.2%
• Kaohsiung City: 2,504 buildings, a monthly decrease of 17.3% and a yearly decrease of 40.4%

Overall, the total number of building transfers in the six cities was 16,876, a monthly decrease of 7.3% and a yearly decrease of 26.3%. Among them, Kaohsiung City had the largest yearly decrease at 40.4%, while Tainan City was the only city with a monthly increase of over 10%, making it a rare bright spot in this month's housing market.

However, real estate agents have pointed out that Tainan's rebound mainly stemmed from the handover of individual new projects and does not indicate an overall market recovery. Zhang Xulan, Executive Director of the Taiwan Housing Group Trend Center, stated that such short-term fluctuations are often related to the timing of project handovers and are not indicators of a rise in market demand.

Stock Market Volatility and Tariff Policies Impact Buying Interest

In early April, U.S. President Trump announced a new round of reciprocal tariffs, causing significant upheaval in global financial markets. Taiwan, as an export-oriented economy, was particularly affected. Real estate experts noted that this market crash not only hit investor confidence but also made potential homebuyers more conservative.

Lai Zhichang, Public Relations Director of the Planning and Research Office of Dajia Real Estate, pointed out that the market initially expected the buying momentum from March to continue into early Q2, but the sudden tariff war and stock market volatility in April quickly cooled buyer confidence, intensified the cautious atmosphere, and led to a decline in transaction volume.

Chen Jinping, Deputy Manager of the Research and Development Center of Yongqing Real Estate, also stated that the transfer numbers in April reflect the transaction situation from mid-March to early April, when the market had not fully reacted to the impact of tariff policies. Future data may further reveal the depth of its impact.

Tightening Bank Loans and Financial Pressure Aggravate Transaction Delays

In addition to stock market factors, the tightening of bank lending policies is also a significant reason for the suppression of real estate transactions. Since 2025, banks have continued to tighten their mortgage review standards, with some banks even raising income requirements for applicants and experiencing delays in loan disbursements.

Chen Dingzhong, Senior Manager of Taiwan Housing Group, pointed out that these factors have led to delays in buyer disbursements and registration of handovers, further affecting the performance of sales transfers in April. Zeng Jingde, Project Manager of the Planning and Research Office of Sinyi Realty, noted that since Q4 last year, the central bank's seventh wave of credit control and the tightening of bank loan approvals have pressured the market, and the decline in April's transaction volume is a continuation of this trend.

Moreover, as May enters the tax season, the financial pressure on the public increases, further delaying home purchase decisions. Xu Jiaxin, Executive Director of the Planning and Research Office of Zhushang Real Estate, stated that the intertwining of financial tightening and tax pressure has led to a wait-and-see approach for both self-occupancy, property acquisition, and investment buyers.

TSMC's Investment in the U.S. Affects Buying Interest in Central and Southern Taiwan

Another factor affecting the real estate market comes from the dynamics of the technology industry. In early March, TSMC announced plans to strengthen its investment in the U.S., raising concerns about its construction plans in Taiwan. Zhang Xulan pointed out that this news affected buying interest in some "TSMC housing" concept areas in Taichung and Kaohsiung, especially in areas farther from the plant, where buying interest has declined.

Kaohsiung City's transfer numbers in April showed a yearly decrease of 40.4%, the largest among the six cities. Real estate agents analyzed that besides the TSMC factor, Kaohsiung's overall transaction volume was also hit by the dual impact of financial tightening and insufficient market confidence.

Transaction Volume Hits New Low in Recent Years, Market Wait-and-See Atmosphere Strong

According to statistics, the total number of sales transfers in the six cities from January to April 2025 was 64,911 buildings, a yearly decrease of 24.3% compared to the same period last year, marking a new low for the same period in the past seven years. Among them, Tainan and Kaohsiung hit an eight-year low, while New Taipei City recorded the lowest transaction volume in nine years.

Lai Zhichang pointed out that although individual areas like Tainan experienced a short-term rebound, the overall real estate market remains in a sluggish state, with buyer confidence yet to recover. Xu Jiaxin also believes that the brief warming in March did not continue into April, indicating that the market is still affected by multiple negative factors, making it challenging to boost transaction activity.

References

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