TAIPEI (Taiwan News) — Residential and commercial property transactions fell 36% in May compared to a year earlier, as uncertainty stemming from US President Donald Trump’s tariff policy dampened buyer confidence.
Property transactions in Taiwan’s six major municipalities fell to 17,196 units in May, a record low for the month, per UDN. From January to May, total transactions in the six cities reached 82,107, down 27.1% year-on-year, marking the lowest five-month total in eight years.
Hsu Chia-hsin (徐佳馨), executive director of the planning and research office at Sinyi Realty, said May’s figures reflect market conditions in April, as real estate transactions typically take one to two months to register. Escalating US tariffs and a global stock market slump compounded the effects of Taiwan’s existing anti-speculation measures, further weakening the housing market.
Hsu said uncertainty in global politics and economics led many potential buyers to delay or abandon purchases, dragging down demand. Although the decline in housing prices has been moderate, high mortgage rates and long loan processing times continue to suppress demand, Hsu added.
Hsu pointed out that although some developers in northern Taiwan have begun offering price concessions, overall price corrections remain limited. However, she noted that sellers with properties in fringe areas, older units in poor condition, or those facing short-term financial pressure are now more likely to cut prices first, indicating that early price adjustments may occur in these segments.
Chen Chin-ping (陳金萍), a research manager with Yung Ching Realty Group, told UDN that Taipei and Tainan recorded year-on-year declines of 24.4% and 36.6%, respectively, both eight-year lows. New Taipei and Kaohsiung posted declines of 32.2% and 35.7%, marking their lowest levels in nine years.
Meanwhile, Taoyuan and Taichung saw year-on-year dips of 16% and 18.9%, respectively.
Taipei had the weakest overall performance in May, with just 1,732 transactions, the lowest May figure since 2003. It registered the steepest month-on-month descent among the six cities at 18.4%, and a 42.9% year-on-year drop, second only to Kaohsiung’s 56.6%.
