TAIPEI (TVBS News) — Economic pessimism is deepening across Taiwan as nearly 70% of residents believe now is not the right time to buy property, according to Cathay Financial Holdings' (國泰金控) August confidence survey released Wednesday (Aug. 20). The comprehensive study found 68.8% of respondents consider housing purchases ill-timed, while 58.7% hold similar views about selling properties. Housing market sentiment has deteriorated significantly, with the purchase willingness index plummeting to -50.5 and selling willingness dropping to -33.6.
The comprehensive survey polled 12,680 Cathay Life Insurance Company (國泰人壽) members and Cathay United Bank (國泰世華銀行) customers between Aug. 1 and 7. Results revealed declining confidence across multiple economic indicators, with the public's economic outlook optimism index falling to -39.9 and current economic optimism dropping to -35.6. Citizens project conservative economic growth of 2.59% for 2025 alongside inflation expectations of 2.25%, reflecting widespread caution about Taiwan's economic trajectory.
Taiwan's cabinet the Executive Yuan's (行政院) statistics agency, the Directorate General of Budget, Accounting and Statistics (主計總處), projected more optimistic figures on May 28, forecasting 3.1% economic growth and 1.88% inflation for 2025. Public sentiment remains considerably more pessimistic than official government projections, highlighting a significant disconnect between authorities and citizens. Consumer spending appetite has weakened accordingly, with the large consumption willingness index declining to -1.7, though durable goods consumption willingness improved slightly to -19.2.
Stock market confidence has deteriorated amid ongoing U.S. trade negotiations, with Taiwan's market optimism index falling to -8.0, though risk appetite rose to 7.3. Currency preferences reveal strategic hedging behavior, as 42% of respondents seek increased U.S. dollar holdings, 20% prefer Japanese yen, and 30% show no foreign currency interest. Motivations for foreign currency accumulation vary: 30% plan overseas travel, 25% target international investments, while 18% pursue exchange rate arbitrage opportunities. ◼ (At time of reporting, US$1 equals approximately NT$30.275)
