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Housing Market Declines for Two Quarters; Li Tongrong Predicts North Shike as the Resilient Area

Housing Market Declines for Two Quarters; Li Tongrong Predicts North Shike as the Resilient Area

According to the report released by JIHome, the first quarter of 2025 saw declines in both price and transaction volume in the housing market across seven cities. The average price for the six cities dropped slightly by 1.2%, with a transaction volume of 62,892 units, marking the lowest in nine years. Only New Taipei City saw a minor increase of 0.67%, while the other five cities experienced slight decreases. Chairman Li Tongrong warned that with the average price and transaction volume in the six cities dropping for two consecutive quarters, a clear bearish trend has established itself, marking a shift in the market from bullish to bearish from south to north.

Li emphasized that the government's AI policies will play a significant role in stimulating Taiwan's economic outlook and regional development. He predicts that the current housing market downturn will not be severe, and the decline will not last long. As for when the market will stabilize, he anticipates it will be in the third quarter of 2026. He advises homebuyers to actively seek resilient areas and make prudent selections in the latter half of the year.

Additionally, an analysis showed that the performance of housing prices in the first quarter remained the most resilient in New Taipei City, while the other five cities showed varied degrees of decline. Li mentioned that North Shike, benefitting from the AI industry development, is expected to be a key resilient area in the housing market moving forward. Considering the numerous potential negative factors ahead, the fluctuations in housing prices may continue, but prospective buyers could expect gradual market recovery.