TAIPEI (Taiwan News) — A recent analysis by Taiwan Realty Estate Co. indicates that in several major Taiwanese cities, average monthly salaries fall short of covering standard mortgage payments, with Taipei showing the widest gap between income and housing costs.
The study used first-quarter housing loan data from the Joint Credit Information Center and average wages under the New Labor Pension System as of April. It calculated mortgage burdens for Taiwan’s six municipalities, as well as Hsinchu City and County, based on an 80% loan-to-value ratio, a fixed interest rate of 2.282%, and a 30-year repayment period, according to CNA.
In Taipei, the average home price in the first quarter was NT$26.21 million (US$907,052), resulting in an estimated monthly mortgage payment of NT$80,500. The city’s average monthly salary is NT$54,600, leaving a gap of NT$25,900 even if the entire salary is allocated to mortgage payments.
New Taipei showed a smaller but still negative margin. With an average home price of NT$15.6 million and a monthly mortgage payment of NT$47,900, the average salary of NT$43,800 still falls short by NT$4,100.
In Taichung, the average home price was NT$13.13 million, with a corresponding mortgage payment of NT$40,300. The average salary, at NT$39,800, is slightly below that figure.
In contrast, Hsinchu recorded a relatively higher income level, with an average monthly wage of NT$73,600. The average home price was NT$19.36 million, translating to a monthly mortgage payment of NT$59,500.
After making mortgage payments, residents would have about NT$14,100 remaining, though the mortgage accounts for about 80% of their salary.
Chang Hsu-lan (張旭嵐), executive director at Taiwan Realty Estate’s research center, said housing prices have reached levels where average monthly payments now represent over 80% of an individual's income in some areas. She said this trend presents challenges for those seeking to purchase homes, especially single-income households.
Chang added that some younger buyers are choosing to look in suburban areas where property is relatively less expensive. Chang also observed that while Hsinchu benefits from higher salaries due to its tech sector, recent increases in local home prices have also raised the mortgage burden.
Ideally, Chang said, housing costs should account for no more than 30–40% of a person’s monthly income to maintain financial flexibility.
