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Is the Housing Market's Recovery Just an Illusion? Experts Warn: This Hike Won't Last, True Price Cuts Are Yet to Come!

Is the Housing Market's Recovery Just an Illusion? Experts Warn: This Hike Won't Last, True Price Cuts Are Yet to Come!

The housing market has seen an uptick during the 329 period and the traditional spring season, with figures for pre-sales, new housing supply, client visits, and transactions all rising in March. However, housing market experts caution that this recovery may be a "false prosperity", as true negative factors have not yet been fully reflected. Developers are adopting a more conservative pricing strategy, creating an atmosphere of market concessions, and the pressure for price corrections continues to accumulate.

Additionally, the impact of President Trump's tariff policy has shaken global stock markets, causing potential home buyers to adopt a wait-and-see attitude.

According to the latest survey from the Housing Exhibit magazine, boosted by the 329 period, the volume of pre-sales in March reached approximately NT$80 billion, an increase of nearly NT$20 billion from the previous month, with client visits and transactions climbing to 21.6 and 1.8 respectively, creating a near two-season high.

Experts indicate that while signs of recovery in the housing market are evident, the actual sales period for new projects typically exceeds six months. The total number of properties available for sale has surged to 1,235, marking a new high in nearly three years and resembling the high-pressure selling peaks seen at the onset of the pandemic. Therefore, if the market absorption speed does not meet expectations, a wave of price concessions could persist.

In the current unstable economic environment, experts warn that developers’ responsiveness to price adjustments may still be influenced by interest rates and credit policies, making it difficult for buyer demand to genuinely rebound.