Residential Real Estate Transactions - Taiwan

In Taiwan, the Residential Real Estate Transactions market market is projected to achieve a transaction value of US$27.98bn by 2024.
It is anticipated that this market segment will experience a compound annual growth rate (CAGR 2024-2029) of 3.87%, leading to a market volume of US$33.83bn by 2029.
Taiwan's residential real estate market is experiencing a surge in demand due to favorable government policies and strong economic growth.

Definition:

Residential real estate transactions refer to the buying, selling, or transfer of ownership of residential properties such as single-family homes, condominiums, townhouses, and apartments. These transactions involve a number of steps and parties, including buyers, sellers, real estate agents, attorneys, lenders, and title companies.

Additional information:

The KPIs covered in this market are the real estate transactions revenue and the average revenue transaction value.

Overall revenue generated by residential real estate transactions

Commercial real estate transactions
Revenue of real estate agencies
Revenue of construction companies

The Residential Real Estate Transactions market in Taiwan has been experiencing significant growth in recent years.

Customer preferences: Customers in Taiwan are increasingly interested in purchasing residential properties as an investment. The strong demand for real estate is driven by several factors, including the desire for stable returns and the potential for capital appreciation. Additionally, many Taiwanese individuals and families see real estate as a secure long-term investment option, especially compared to other volatile investment markets.

Trends in the market: One major trend in the Taiwanese residential real estate market is the increasing popularity of urban living. As the population continues to concentrate in major cities like Taipei and Kaohsiung, there is a growing demand for housing in these urban areas. This has led to the development of more high-rise apartment buildings and condominium complexes to accommodate the increasing number of residents. Another trend in the market is the rise of the luxury real estate segment. Wealthy individuals and foreign investors are attracted to high-end properties in prime locations, such as luxury apartments with stunning views or spacious houses in exclusive neighborhoods. This trend is fueled by the growing affluence of the Taiwanese population and the desire for prestigious properties that offer a luxurious lifestyle.

Local special circumstances: Taiwan's geographic location and limited land availability contribute to the unique circumstances in the residential real estate market. With limited space for new construction, the demand for existing properties remains high, leading to competitive bidding and rising prices. Additionally, Taiwan's strict regulations on land use and development further limit the supply of new residential properties, driving up prices even further.

Underlying macroeconomic factors: The strong performance of Taiwan's economy has played a significant role in the growth of the residential real estate market. The country's stable economic growth, low unemployment rate, and rising incomes have increased the purchasing power of Taiwanese consumers, enabling them to invest in real estate. Furthermore, low interest rates and favorable mortgage conditions have made it easier for individuals to finance their property purchases. In conclusion, the Residential Real Estate Transactions market in Taiwan is experiencing growth due to customer preferences for real estate as an investment, the trend towards urban living, and the rise of the luxury real estate segment. The limited land availability and strict regulations on land use contribute to the unique circumstances in the market. The strong performance of Taiwan's economy, low interest rates, and favorable mortgage conditions are underlying macroeconomic factors that support the growth of the residential real estate market.

Data coverage:

Figures are based on total and average revenue of residential real estate transactions (sales).

Modeling approach:

Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

The global housing market has slowed amid high inflation and soaring borrowing costs. Homeownership is one of the most universal signs of success and prosperity: It serves both as a source of stable and secure housing and a long-term investment. After the global financial crisis, property prices rose in many countries and especially in advanced economies. For more than a decade after that, the housing market has been on an upward trajectory, culminating in the housing boom during the COVID-19 pandemic. However, housing shortages in highly competitive markets, the recent rapid house price growth, soaring inflation, and consequently, some of the highest mortgage interest rates recorded in the past 10 years have led to the market cooling.

Soaring inflation and aggressive mortgage interest rate hikes cooled the European housing market after a nearly decade-long period of growth. Since 2015, house prices in the European Union have grown by about 50 percent. When inflation in Europe started to rise at an alarming rate in 2021, the European Central Bank increased interest rates, resulting in substantially higher mortgage interest rates and a decline in homebuying. But how important is homeownership for Europeans?

Generally considered the third key pillar of the food, clothing, and shelter trinity popularized in India over generations, owning a home is still prioritized as a measure of financial security by a vast majority of the Indian population. The COVID-19 pandemic with its successive lockdowns and restrictions to stay within the confines of one’s home, further reinforced this vision. India’s growing urban population, rising household incomes, and decade-long low-interest rates have been propelling the demand for residential units, driving up the sales volume. Even though the residential real estate sector was severely hit in 2020, it marked a strong recovery in consecutive years, crossing pre-COVID sales figures.

Residential Real Estate Transactions - Taiwan

Volume

Analyst Opinion

Transaction Value

Real Estate Type

Living Space

Methodology

Financial

Access more Market Insights on Financial topics with our featured report

Key Market Indicators

Explore more high-quality data on related topic

Global housing market - statistics & facts

Explore more high-quality data on related topic

Residential real estate in Europe - statistics & facts

Explore more high-quality data on related topic

Residential real estate in India - statistics and facts

Contact

Get in touch with us. We are happy to help.

Residential Real Estate Transactions - Taiwan

In-Scope

Out-Of-Scope

Related markets:

Residential Real Estate: market data & analysis

Financial

Access more Market Insights on Financial topics with our featured report

Explore more high-quality data on related topic

Global housing market - statistics & facts

Explore more high-quality data on related topic

Residential real estate in Europe - statistics & facts

Explore more high-quality data on related topic

Residential real estate in India - statistics and facts