The trade war and stock market volatility have led to a historic low in housing transactions in Taiwan's six metropolitan areas for May. According to the government data released, the total number of residential property transactions in May was just 17,196, down 36.1% compared to the same period last year, marking the lowest point since 2011.

Notably, Taipei achieved a record low of 1,732 transactions, a 42.9% decrease year-on-year, while Kaohsiung saw a significant decline of 56.6%. Overall, the total transactions for the first five months amounted to 82,000, reflecting a 27.1% drop and the lowest figure in eight years.

According to Zhang Xulan, Executive Director of the Taiwan Realty Group's Trend Center, multiple factors including stock market fluctuations, tariff wars, and tightened lending conditions have undermined buyer confidence, prompting a shift towards a wait-and-see approach among potential buyers, particularly in high-asset areas such as Taipei.

In May, the total transaction numbers across the six areas were: Taipei 1,732 (-42.9%); New Taipei 4,816 (-27.4%); Taoyuan 3,266 (-23.6%); Taichung 3,390 (-31.1%); Tainan 1,738 (-38.9%); and Kaohsiung 2,254 (-56.6%).

While May's transaction numbers showed a slight increase compared to April, this was primarily due to performance in New Taipei and Taichung. The transaction volume in New Taipei rose by 26.6% month-on-month, supported by the completion of key new projects in the Tucheng District. Experts observe that even with price reductions from developers, the actual price adjustments in the housing market remain limited.