Last year, the Central Bank implemented the seventh wave of selective credit control, which halved the transactions of used homes and nearly 70% of pre-sale homes in just six months. This marked a significant turning point in Taiwan's housing market from boom to bust.

Statistics reveal that following this policy, the average price of used homes saw a 4.2% correction, while pre-sale homes experienced a 6.2% increase in average price due to rising developer costs and adjusted sales strategies. According to statistics from Yungching Realty Group, during the active period of April to September last year, there were an average of 12,000 pre-sale residential transactions and 11,000 used residential transactions monthly across Taiwan. However, since the implementation of credit control, the current monthly transactions have dropped to just over 4,000 for pre-sale homes and under 6,000 for used homes, indicating a more severe contraction in the pre-sale market.

In metropolitan areas outside of Northern Taiwan, the reduction in pre-sale home transactions exceeds 70%. In terms of pricing, the withdrawal of investor purchases, buyer caution, and a loosening attitude of sellers have contributed to a downward trend in used home prices, with only the Taipei metropolitan area remaining relatively stable at under 1% fluctuation, while other previously booming urban areas have shown adjustments between 4% to 7%. Conversely, pre-sale home prices continue to rise, with New Taipei and Taichung reporting increases of over 7%.

Chen Jinping, Deputy Director of Yungching Realty Research Center, stated that restrictions on housing market funds have noticeably cooled buyer enthusiasm. The sharp decline in transactions for both pre-sale and used homes directly impacts the used home market, placing prices in a state of slight revision and consolidation. Developers in the pre-sale market show limited willingness to lower prices, often opting for renovations or appliances instead, resulting in slight price increases in some areas but no recurrence of the previous rapid price hikes. Zhang Xulan, Executive Director of the Taiwan Housing Group's Trend Center, noted that the second-hand housing market is most impacted by lending regulations, as the market shifts to favor buyers, limiting price growth for pre-sale homes. However, prime locations and flagship projects from reputable developers still manage to attract buyer confidence despite the shrinking transaction volume.