Taiwan’s housing price correction gained momentum in the fourth quarter of 2024. Prices dropped in all six major cities, with Kaohsiung leading the decline.
Chinatrust Real Estate reported a market cooldown on Monday. The Central Bank’s seventh round of credit controls, announced in September, triggered the downturn. Stricter financial inspections also weakened buying interest.
Data from the Ministry of the Interior showed the national average housing price dropped to NT$338,600 per ping. That marked a 6.6% fall from NT$362,700 in the third quarter.
Kaohsiung experienced the sharpest decline, with prices down 10.4% compared to earlier in the year. Tainan followed with a 7.1% drop. Other cities saw smaller declines: Taoyuan fell 4.8%, Taichung 3.2%, Taipei 3%, and New Taipei 2.3%.
Chuang Ssu-min, deputy manager at Chinatrust’s R&D office, explained the trend. She said tech industry optimism had pushed prices in Kaohsiung and Tainan higher. However, promised infrastructure has not yet arrived, and local income levels remain low.
As speculators exited the market, more end-user buyers stepped in. Homeowners, trying to avoid deeper losses, lowered prices and rushed to sell. These behaviors accelerated the housing price correction in the fourth quarter.
In contrast, Taipei and New Taipei showed more stability. Chuang said top locations in Greater Taipei retain value better. The region also has fewer speculative buyers due to already high property prices.
Greater Taipei offers strong job markets and steady demand, which help support housing fundamentals. That resilience has shielded the area from more severe declines.
Chuang noted additional pressures weighing on the market. These include ongoing credit restrictions, trade tensions between the US and China, and rising cross-strait risks.
She warned that without positive changes, the housing price correction may continue through 2025. Still, the market now favors serious buyers. Unlike during the boom, sellers are more willing to negotiate.
Experts believe this housing price correction could create more balanced conditions in the long term. Buyers now face less competition and better chances to secure fair deals.
