The number of construction starts in the housing market has exceeded 100,000 units for six consecutive years, which is the largest construction wave since 1998, that is, in 26 years! Although the number of construction starts in the first three quarters of this year has declined compared with last year, there is still a chance to challenge 130,000 households throughout the year. Zeng Jingde, project manager of Xinyi Housing Real Estate Enterprise Research Office, said that this surge in the number of construction starts is related to the rise of areas outside the Shuangbei.
Further reading: The lights have changed!Taiwan’s housing market boom signal turns green in third quarter and will remain until next year
According to the monthly statistical report of the Ministry of the Interior, this wave of housing construction began in 2018, with more than 100,000 units started each year. The peak period is from 2020 to 2022, with the number of starts as high as 130,000 to 140,000 units a year. Before this year The total number of households in the three quarters also reached 99,000. The last wave of large-scale construction for a long time was already before 1998.
Zeng Jingde, project manager of Xinyi Housing Real Estate Enterprise Research Office, said that the housing market recovered from the bottom in 2018, and the housing market began to heat up in 2020. Starting from 2020, the number of construction projects has exceeded 130,000 for three consecutive years, which is equivalent to an average of at least 10,000 households in Taiwan every month. The start of residential construction reflects stable market demand. Developers see steady sales of projects in hand and are more willing to buy land and promote projects. Although the number of construction starts in the first three quarters of this year has declined compared with last year, there is still a chance to challenge 130,000 households throughout the year. However, Judging from the volume of pre-sales disclosures, developers generally face declining sales rates and prolonged sales times.
Statistics show that from 2009 to 2017, the average number of residential construction starts per year was about 77,000 units. However, it has exceeded 100,000 units since 2018, and has climbed all the way to last year’s peak of 146,000 units; however, the average land rights regulations began to be discussed. In recent years, pre-sale case sales have declined. If we compare the number of construction starts and the amount of pre-sale disclosures, the overall sales rate has also begun to decline significantly from more than 70% in 2021.
Zeng Jingde pointed out that this surge in the number of construction starts is related to the rise of areas outside Shuangbei. Most of the highlights of this wave of housing market are in areas outside Shuangbei. Major construction investments in these areas have gradually been completed, urban competitiveness has increased, and the base period of housing prices has been low. Investment in the technology industry has ignited, which has led to an increase in market buying momentum. Developers have successfully sold their projects and are more willing to actively buy land and promote projects. Until the discussion on the equalization of land rights regulations begins, the pre-sale market will cool down significantly in the second half of 2022. In other words, the real pressure will only gradually begin to accumulate in the second half of 2022.
Yahoo Finance special correspondent Ye Yiru: 22 years of experience in mainstream financial media. From the Web1.0 bubble in 2000 to the Meta Yuanverse Web3.0, he has witnessed the rise and fall of Taiwan’s large and small enterprise groups and has experienced five international financial crises. We believe that finance is life and is everywhere. No matter how difficult financial knowledge is, we should explain it in a simple way. Everyone, young and old, should manage money. If you don’t manage money, money will not care about you.