Developers are promoting low down payments and construction upgrade strategies to capture the last opportunity market of the new young homebuyer policy.

Taiwan • Business • 05/04 18:00
Developers are promoting low down payments and construction upgrade strategies to capture the last opportunity market of the new young homebuyer policy.

Faced with the impending end of the new Youth Housing Policy and a weakening real estate market, developers are offering low down payment incentives and building upgrade strategies to attract home buyers. The minimum home purchase threshold is set at 250,000 NTD, and introducing designs such as green buildings and smart homes. Despite this, real estate market transaction volumes are declining, putting more pressure on developers, who are offering incentives like free interior decoration. Demand from owner-occupiers remains the main force in the market, and the government's push for green building policies is prompting industry transformation.

Key Updates

05/05 06:00

Taiwan's New Housing Tax 2.0 System to Launch in July 2024: Impact on Annual Levy and Ownership Transfer

Starting from July 1, 2024, Taiwan will implement the "House Tax 2.0" system, switching to an annual assessment. The tax period will run from July 1 to June 30 of the following year, with the tax base date set on the last day of February each year. If the property ownership registration is completed by February 28 (or 29 in a leap year), the house tax for that year will be the responsibility of the new owner; otherwise, the original owner will be responsible for paying it. This change impacts tax responsibilities in property sales and auctions, and it is advisable to clearly specify tax-sharing clauses in contracts to prevent disputes.

05/05 06:00

Taiwan's housing prices have increased by 25% in the past three years, and rents have been rising for 45 consecutive months. The government is responding with subsidies and tax reforms.

Over the past three years, housing prices in Taiwan have risen by 24.8%, and the rent index has increased by 7%, with 45 consecutive months of increase, indicating an increased burden on renters. The government is implementing rent subsidies and tax transparency policies, and reforming the tax system to incentivize landlords to report rental income legally. The appreciation of the New Taiwan Dollar has attracted capital back, impacting asset allocation in the housing market. These measures are intended to ease rental pressure and enhance market transparency.

05/04 18:00

Developers are promoting low down payments and construction upgrade strategies to capture the last opportunity market of the new young homebuyer policy.

Faced with the impending end of the new Youth Housing Policy and a weakening real estate market, developers are offering low down payment incentives and building upgrade strategies to attract home buyers. The minimum home purchase threshold is set at 250,000 NTD, and introducing designs such as green buildings and smart homes. Despite this, real estate market transaction volumes are declining, putting more pressure on developers, who are offering incentives like free interior decoration. Demand from owner-occupiers remains the main force in the market, and the government's push for green building policies is prompting industry transformation.

05/04 09:01

Housing Tax 2.0 New Policy: Deadline for Reporting Owner-Occupied Homes Extended to June 2, Late Submissions May Face Penalties with Higher Tax Rates

The new "Housing Tax 2.0" system, implemented on July 1, 2024, will be collected for the first time in May 2025. The new system requires that owner-occupied houses must complete household registration and declaration to qualify for a preferential tax rate of 1.2% or 1%. The original deadline for the declaration was March 24, 2025, but the Ministry of Finance extended it to June 2, 2025, to protect taxpayers' rights. Those who fail to meet the deadline will be taxed at a non-owner-occupied rate ranging from 3.2% to 4.8%. This article outlines the new system's regulations, the declaration process, and common errors to help the public avoid incurring tax losses.

05/04 06:00

Taiwan's real estate market has become a buyer's market. Experts recommend making offers based on current market prices, with different strategies for city center and suburban areas.

Taiwan's housing market has shifted to a buyer's market due to the central bank's lending restrictions, the ban on presale contract assignments, and international geopolitical and economic uncertainties. Experts suggest that homebuyers make offers based on real price registration data, referencing the lowest transaction prices in the past year for core areas, and considering the owner's costs in outer areas to negotiate for a sale at break-even or at a loss. The new luxury tax regulation affects homeowners' pricing strategies, providing buyers with room for negotiation. Existing homes have become the market focus due to their advantages in price and location.

05/01 11:02

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.

04/30 06:01

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.

04/30 01:01

Taiwan's six major cities' rental index hits a 28-year high: Prime locations in Taipei and New Taipei City see annual rent increases of over 10%, creating economic pressure for renters.

In 2024, the annual growth rate of Taiwan's rental index reached 2.56%, reaching a 28-year high, indicating significant changes in the rental market. Taichung City experienced the highest rent increase of 26.47%, while prime areas in both Taipei and New Taipei City saw annual increases of over 10%. The rise in housing prices, land prices, and construction costs has driven up rents, putting economic pressure on renters, particularly on the younger generation. Government measures like the vacant home tax and rental subsidies have not effectively mitigated the rise in rents, and the supply-demand imbalance issue persists.

04/28 06:00

In 2024, the number of filings for Taiwan's unified housing and land tax rose to 134,000, with reselling properties held for 5-10 years becoming the mainstream trend.

In 2024, the number of filings for Taiwan's unified housing and land tax reached 134,000 filings, an increase of 17,000 from 2023. Due to anti-speculation measures and the seventh wave of credit controls, transaction volumes shrank rapidly in the fourth quarter, and the proportion of short-term transactions decreased. Resales of properties held for 5 to 10 years became the norm, with 36.1% of cases taxed at a 20% rate. The decline in short-term transactions is due to high tax costs and conservative bank valuations for properties resold within a year.

04/28 02:00

Beitou's New Housing Prices Soar Past One Million NT Dollars: Top-Notch Schools and Healthcare Draw in Families and Retirees

Beitou District, Taipei City, has become a real estate hotspot due to the development of the Beitou-Shilin Technology Park and convenient transportation, with new construction prices exceeding one million NTD per ping. The area boasts high-quality school districts and well-developed medical resources, attracting small families and retirees. Despite rising prices, Beitou still holds a price advantage compared to downtown Taipei, making it a popular choice for homebuyers. This article explores the reasons behind the rising prices of new constructions in Beitou, the area's advantages, and the market's response.

Low Down Payment Offers Become Mainstream Marketing Strategy

Under the New Youth Housing Loan policy, as of the end of February 2025, more than 100,000 loans have been approved, amounting to NT$822.4 billion, indicating a strong demand from first-time homebuyers for low-barrier home purchase plans. To capitalize on this policy benefit, developers are launching low down payment plans, with some projects even promoting "buy a house starting from NT$250,000," significantly lowering the home buying threshold.

According to a survey by "Housing Exhibition Magazine," common promotional tactics by developers include low down payments, free furniture and appliances, pricing below the local market rate, no penalty for canceling before handover, and even a two-year rental guarantee. These plans not only attract first-time buyers but also encourage hesitant owner-occupiers to enter the market.

Building Upgrades: Green Buildings and Smart Homes Become Standard

In addition to pricing strategies, developers are actively upgrading building quality by incorporating green building and smart home systems to enhance product competitiveness. According to a report by the "Economic Daily," several brand developers have invested over ten million to upgrade project facilities and voluntarily incorporate energy-saving, smart, and carbon-neutral designs.

For example, the "Smile Haiyue 2" project launched by Haiyue Group in Yingge and Tainan incorporates green building and smart home systems and has received the nation's first "Engineering Yellow Diamond" certification. Huangpu Construction's four new projects are equipped with PCM construction management and EMS energy management systems, and feature a "keyless access management system," emphasizing integrated smart access from the community to the home.

Jiarun Construction's "Jiarun Heyu" and "Jincheng Road Project" focus on all-around buildings, combining green building, smart home, and seismic resistance certifications. The "Jincheng Road Project" has even received a first-level accessibility certification in residential performance assessment, indicating developers' focus on age-friendly and sustainable development in product design.

Policy and Market Variables Intertwine, Increasing Pressure on Developers

Despite developers' active strategies, the overall housing market still faces multiple variables. According to He Shichang, CEO of Xin Chuan Real Estate Think Tank, the impact of the U.S. tariff war in April 2025 caused pre-sale transaction volumes to drop from 6,000 in March to over 5,000, indicating a significant decline in market demand. He pointed out that if the second-quarter transaction volume cannot rebound to over 6,000, developers will face greater pressure to lower prices in the second half of the year.

Moreover, housing market transaction volumes have been shrinking for a year. According to "Wealth Magazine," the number of building sales transfers in the six major metropolitan areas in the first quarter of 2025 was 48,035, a year-on-year decrease of 23.6%. In the context of sluggish transaction volumes, developers are reluctant to significantly lower prices but have made it a norm to offer practical benefits through free renovations, appliances, and department store vouchers.

Owner-Occupier Demand Remains the Market Mainstay

Amid policy and economic uncertainties, investment buying has clearly retreated, making owner-occupier demand the market mainstay. According to statistics from Yongqing Real Estate Group, from November to December 2024, products priced below NT$20 million accounted for over 50% of transactions in the seven major cities, reaching as high as 90% in Taoyuan, Taichung, Tainan, and Kaohsiung. This indicates that if developers can offer attractive products in this price range, they still have a chance to stabilize sales.

He Shichang pointed out that owner-occupier buyers are most concerned about "living comfort" and "price," so developers emphasizing smart, energy-saving, and convenient living in product design have become key to attracting demand.

Green Building Policies Drive Industry Transformation

Government policies are also driving the transformation of the construction industry. According to the Ministry of the Interior's Building Research Institute, the "Residential and Commercial Net Zero 3.0 Plan" invests NT$5 billion to promote the extension of old buildings' lifespan and upgrade building energy efficiency, requiring new projects to achieve green building certification and incorporate building carbon footprint assessments and smart energy management systems. This move encourages developers to include energy-saving and carbon-neutral designs in the planning stages of new projects, further enhancing the added value of projects.

For example, large developers like Farglory and RunTai have launched "Net Zero Pre-Sale Houses," featuring standard solar roofs and smart meters, responding to policy requirements while also meeting market expectations for sustainable housing.

Market Hesitation Atmosphere Thickens, Developers Get Creative with Marketing

In the context of weak demand, developers are also using creative marketing activities to attract attention. For example, "Baoxiang Zhu Yuan Shan" launched a like-and-follow contest to win a pair of tickets to Osaka, combining travel and house viewing experiences to increase brand exposure; "Yongxiong Haicheng" launched a four-gift promotion during Mother's Day, offering gifts from house viewing to ordering, enhancing consumer engagement.

These activities reflect developers' flexible adaptation in marketing strategies, attempting to create buzz and demand amid a market hesitation atmosphere.

References

People Also Ask...

faq

Why do developers opt for low initial payments and construction upgrades when tackling challenges in the housing market?

faq

Developers are advocating for eco-friendly buildings and smart homes. So, what real benefits do these upgrades bring to the environment and the people living there?

faq

What new technologies or features in the smart home systems offered by developers are worth noting?