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.

Taiwan • Business • 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.

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.

Housing Prices Rise Nearly 25% Over Three Years, Rent Increases More Moderately

According to data from the Ministry of the Interior's Real Estate Information Platform, the residential price index reached 150.98 by the fourth quarter of 2024, up 24.8% from 121.01 in the first quarter of 2022. During the same period, the rent index rose from 100.59 to 107.66, an increase of 7%. Although the rent increase is significantly lower than the housing price increase, the rent index has been rising for 45 consecutive months since June 2021, reaching 108.2 by March 2025, indicating ongoing upward pressure in the rental market.

Zhang Xulan, Executive Director of the Taiwan Housing Group Trend Center, pointed out that the active real estate market in recent years, coupled with land appreciation, has driven up overall housing prices. In contrast, Taiwan's rental baseline is relatively low and has not reflected actual market costs for a long time. However, with inflation, improved rental quality, and policy intervention, rents are gradually being adjusted upward.

Government Promotes Rent Subsidies and Tax Transparency

To alleviate the burden on renters, the government has been promoting a dual-track approach of social housing and rent subsidies since 2016. According to the Ministry of the Interior's National Land Administration, as of the end of March 2025, there were 88,000 active social housing contracts nationwide, providing a maximum monthly rent subsidy of NT$4,000. Social housing rents are generally 20% to 40% lower than market prices and come with basic furniture, no security deposit, and public facilities, attracting many young families and low- to middle-income households to apply.

Additionally, starting in May 2025, the income tax deduction for rent expenses will be increased from NT$120,000 to NT$180,000 and changed from an "itemized deduction" to a "special deduction," allowing renters to avoid competing with other itemized deductions when filing taxes. Chen Dingzhong, Senior Manager of the Taiwan Housing Group Trend Center, stated that this reform is expected to increase renters' willingness to declare, further promoting transparency in the rental market.

To align with the policy, the government has also explicitly stipulated that landlords cannot restrict tenants from declaring rent expenses or pass on taxes that should be borne by the landlord to the tenant. Violators can be fined up to NT$500,000. Landlords who participate in legal leasing and declare rental income can also enjoy a tax exemption of NT$15,000 per house per month and other tax incentives.

Underground Landlords Come to Light, Rent Adjustments Reflect Tax Costs

In the past, there was an "unspoken agreement" in the rental market not to declare taxes, with many landlords not reporting rental income. As the government promotes rent subsidies and tax deduction policies, underground landlords are gradually coming to light. Zhang Xulan noted that to compensate for the new tax costs, some landlords choose to raise rents, further pushing up overall rent levels.

At the same time, improved rental quality is also a driving force behind rent increases. The rise of property management services, increased renovation and management costs have gradually reflected actual operating costs in the rent structure. Nevertheless, due to the low rental base, the overall increase is still less than housing prices, leading some renters to believe that "renting is better than buying."

TWD Appreciation and Asset Allocation Adjustments

Recently, the appreciation of the New Taiwan Dollar (TWD) against the US Dollar has attracted speculative capital into the Taiwanese market. Zhang Xulan stated that the appreciation of the TWD makes financial institutions' funds more abundant, helping to ease bottlenecks in mortgage lending; on the other hand, it also prompts some overseas Taiwanese to readjust their asset structures, transferring funds back to Taiwan as preparation for retirement or real estate investment.

Changes in asset allocation may further affect the flow of funds in the real estate market. Although the long-term impact of exchange rate fluctuations on the real estate market remains to be seen, in the short term, the return of funds and improved mortgage conditions have already provided support for active real estate transactions.

References

People Also Ask...

faq

Rents in Taiwan have been rising for 45 straight months. What new policies has the government introduced to help renters?

faq

How much real help do the government's rent subsidies and new tax filing policy offer to the renter community?

faq

What impact does the New Taiwan Dollar's appreciation have on the flow of funds in the housing market?