TAIPEI (TVBS News) — Taiwan's property market plunged Thursday (Aug. 28) as new government data revealed a dramatic 26.8% decline in real estate transactions during the first seven months of 2025. The Ministry of the Interior (內政部), Taiwan's domestic affairs agency, reported only 154,077 property deals completed through July, according to Lai Chih-chang (賴志昶), public relations director at Great Home Realty (大家房屋). The steep drop represents a striking reversal from the island's recent property boom that had driven prices to record highs across major metropolitan areas.
Lai observed that current transaction levels barely exceed 2017's second-lowest recorded figure of 151,000 deals, signaling the housing market's entry into a significant downturn phase. The real estate executive attributed the market cooling to Taiwan's central bank's seventh wave of stringent credit control measures and loan restrictions that have effectively discouraged potential property buyers. The downturn has hit previously booming markets particularly hard, with Hsinchu County, Tainan City, and Kaohsiung City all experiencing transaction declines exceeding 30%, while only rural Miaoli County maintained relatively stable figures.
Lai explained that these regions had previously experienced exceptional demand growth driven by distinct economic catalysts. Keelung City, a northern port city, attracted buyers through anticipated infrastructure improvements including the planned Keelung MRT (基隆捷運) rapid transit system. Hsinchu County and City rode the technology wave surrounding the renowned Hsinchu Science and Industrial Park (竹科), Taiwan's Silicon Valley, while Kaohsiung and Tainan capitalized on Taiwan's booming semiconductor manufacturing sector. ◼
