Let’s explore real estate markets and economy in Taiwan in 2023 and 2024 as recently viewed by real estate experts in Taiwan.

Dr.Sopon Pornchokchai, President, Agency for Real Estate Affairs was invited by FIABCI-Taiwan to its annual gala dinner for the Taiwan Prix d’Excellence Awards in Taipei on Thursday July 27, 2023.  He conducted a survey of participants at that event who are experts in real estate, mostly real estate brokers and consultants. The number of respondents was 40 from 450 participants. This percentage was not high; however, it does reflect some insights. Interesting findings were as follows:

Table 1: Rating Economy and Real Estate Markets

                                                             2023          2024

Economy of Taiwan                                   6.8            7.0

Real Estate Markets                                  6.5            6.4

Experts saw that currently the economy of 6.8 out of 10. This implied that it was quite good. However, they believed in 2024 the economy would slightly be better at 7.0 out of 10.  In terms of real estate markets, they were rated lower than the economy, i.e. 6.5 out of 10.  However, real estate markets could be the same in 2024 (6.4 out of 10). In Taiwan, real estate markets would be as good as the economy.

Table 2: Growth Sectors of Real Estate in 2023

Sectors                                       Percentage

Low-rise residences                                24%

Office buildings                                      22%

Condominiums                                       12%

Industrial properties                               10%

Social housing                                        10%

Logistics and warehousing                      10%

Commercial properties                             7%

Agricultural properties                              5%

Total                                                     100%

It was found that low-rise residences were the first in priority at 24%. Office buildings were rated at 22% followed by residential condominiums (12%). Industrial properties, social housing and logistics and warehousing were rated at 10% each. There were demands shown in commercial properties as well as agricultural properties too.

Table 3: Largest Developers in Taiwan

Companies                                  Percentage

Longbao                                             14%

Cathay Real Estate                               11%

Continental Engineering                        11%

Runtai                                                 11%

Fubon                                                   8%

Huagu                                                   8%

Others                                                  38%

Considering large real estate developers, Longbao was the first in the priority at 14% However, since the number of respondents was small.  They should be reexamined in the future.  Cathay Real Estate, Continental Engineering and Runtai were No.2 at 11% each.  They it was Fubon and Huagu.  It should be observed that the other 38% were some other names in diversity.  Real estate markets might not be dominated by a small number of big firms.

Table 4: Cities with the Largest Amount of Real Estate Developments

Cities                                           Percentage

Taipei                                                    32%

Taichung                                                21%

Taoyuan                                                 14%

Tainan                                                    11%

Kaohsiung                                             13%

Others                                                     9%

Taipei including the adjacent New Taipei was the largest city voted at 32% Then it was Taichung which was a city in the middle of Taiwan (some 160 kilometers away from Taipei).  Taoyuan is ranked No.3.  It was actually within the zone of influence of Taipei metropolitan area.  Then they were Tainan and Kaohsiung (further down south).
 

Table 5: Target Countries to Buy Properties Abroad

Country                                       Percentage

Japan                                                    25%

Thailand                                                 18%

USA                                                       18%

Singapore                                              14%

Hong Kong                                              5%

Vietnam                                                   5%

Others                                                    16%

Total                                                   100.0%

It was found that Japan was the first in the priority where people in Taiwan would like to buy a house abroad (25%). Thailand and USA were the second in the priority (18%) each. Then they were Singapore, Hong Kong and Vietnam.  There were also some others as well like Australia, Canada, China, Europe & America, Malaysia and Sweden.

Sweden

It could be concluded that Taiwan Economy was not bad; however, the respondents did not see real estate markets better than the economy.  They foresaw that the markets in 2024 might be no difference than in 2023.  There were no few real estate markets that could control the markets.  In turn, there was a diversity of real estate companies in Taiwan.  Amazingly, people in Taiwan would like to buy a house in Japan which formerly occupied Taiwan.