The Taiwan real estate market continues to feel the shockwaves from US President Donald Trump’s reciprocal tariffs. These measures triggered a sharp fall in Taiwan’s stock market, rattling investor confidence and weakening market sentiment in early 2025. Real estate professionals say the first quarter experienced the lowest confidence levels since the COVID-19 pandemic.
Real estate agents cite the Central Bank’s strict credit controls as another reason for the slump. Combined with the tariffs and market drop, these restrictions worsened investor pessimism. According to CNA, experts now expect fewer than 300,000 housing transactions this year, the lowest since 2019.
Hsu Chia-Hsin, research head at H&B Housing, said the situation reflects a perfect storm of economic pressures. Trump’s tariff war and financial market crashes have collided with the Central Bank’s seventh wave of credit restrictions. These were introduced in September to curb risky lending.
Consequently, developers may delay new housing projects to avoid added financial exposure. This trend further reveals changing confidence in the Taiwan real estate market. Hsu warned that the gloomy sentiment could hurt Taiwan’s broader economic outlook.
Although tariffs can cause inflation, Hsu believes stagflation is more likely before any full-blown recession. In such uncertain conditions, investors usually hold on to liquid assets rather than tie money in property. Real estate, being harder to convert quickly, becomes a less attractive option.
Jack Chou, Vice President of Taiwan Realty, pointed out how the US normally reacts to crises with quantitative easing. The US Federal Reserve did so during COVID-19, and Taiwan’s Central Bank followed by cutting interest rates. However, Chou noted that today’s crisis is different. The tariffs are part of a broader shift in global trade, making their effects deeper and longer-lasting.
He compared today’s situation to past disruptions. For instance, during the SARS outbreak, Taiwan’s government halved the land value-added tax. That move helped transactions and sparked a market rebound. But this time, Chou sees prolonged consolidation as more likely.
The Taiwan real estate market now watches closely to see if the Central Bank will ease interest rates again. Some analysts believe a stock crash may drag down housing prices. Others argue that real estate reacts slowly to changes due to low liquidity.
Lai Chih-chang from Great Home Realty added that property sellers rarely liquidate homes quickly to save stock investments. While that belief persists in public opinion, ownership transfers remain time-consuming. However, Lai said individuals seeking homes for personal use may find now a good time to buy.
Overall, the Taiwan real estate market remains under pressure, with tariffs, inflation fears, and credit policies shaping its uncertain path ahead.
