Due to the tight housing loans and central bank credit controls, the high-level adjustment in Taiwan's real estate market has become increasingly evident. According to the latest report from the Xinyi Housing Price Index, the nationwide housing price index is 168.42 points in Q1 2025, down 0.62% from the previous quarter and an increase of 5.99% from the same period last year.

Out of the seven metropolitan areas, five have reported quarterly declines in housing prices, reaching levels seen before last year's credit controls. This indicates that the real estate market has entered an adjustment phase. Further observing the performance in various metropolitan areas, New Taipei City and Taoyuan City continue to rise, with New Taipei City reaching a historic high, while the other cities of Taipei, Hsinchu, Taichung, Tainan, and Kaohsiung have all experienced declines in housing prices compared to Q4 of last year.

However, compared to the same period last year, except for Taipei City with an annual increase of about 1%, other areas have annual growth rates ranging between 5% and 9%. This shows a significant contraction in the previously sustained price increases and marks a clear turning point in the trend.

Xinyi Housing's project manager, Tseng Ching-te, analyzed that this high point mainly appeared when the central bank's seventh wave of selective credit control was implemented. Additionally, Taiwan's stock market fell sharply from 23,600 points to nearly 3,000 during the first quarter, causing turmoil in the financial market along with tightened housing loans, leading to a reversal in market sentiment.

Many major metropolitan areas showed declines in housing prices in Q1, with the market gradually transitioning from a seller's market to a buyer's market. Looking ahead to Q2, Tseng pointed out that challenges in the market have not yet subsided, including stock market fluctuations caused by the tariff wars that began in April, which bring considerable pressure to the real estate market.

Although specific areas maintain price support, the transaction volume in the pre-sale market has shown significant shrinkage, further solidifying the adjustment trend. However, he emphasized that if the international financial market stabilizes quickly, even if the domestic real estate market enters a correction phase, the short-term volatility should not be too large.