Taipei, Taiwan – The word “difficult” has been selected as the representative word of Taiwan’s housing market for 2024, reflecting the struggles faced by both homebuyers and investors. According to the Taiwan Housing Trend Center, 45.3% of participants in an online vote chose this term, which encapsulates the current challenges in Taiwan’s real estate sector.
Taiwan Housing Market in 2024: ‘Difficult’ Captures the Year’s Trends
In a statement released Tuesday, the Taiwan Housing Trend Center revealed the results of its annual online vote to determine the word of the year for the housing market. The vote was conducted in two phases, first among real estate agents and later expanded to the general public. “Difficult” emerged as the top word to represent the state of the housing market in 2024.
The housing market saw a dramatic shift this year, with the once-booming market cooling down following stricter credit controls. The year started with strong momentum, fueled by a government-backed housing loan program aimed at young homebuyers. However, the introduction of tighter policies and higher inflation has dampened buying sentiment and made it significantly harder for individuals to secure homes.
The Impact of Tightened Credit Controls
Taiwan Housing Trend Center’s CEO, Chang Hsu-lan (張旭嵐), explained that the easing of loan conditions in the past year had initially led to a surge in homebuying activity. The momentum continued into early 2024, but the central bank’s third-quarter announcement of a new round of credit controls disrupted the market. The central bank’s intervention targeted housing speculation, cooling the market and impacting the affordability of homes.
Chang stated that this sharp shift in market dynamics led to the word “difficult” becoming synonymous with the real estate sector in 2024, marking a significant contrast to the previous years, when terms like “rise” were chosen to reflect market growth and increasing property prices.
A Comparison: Past Housing Market Trends
In 2022, the term “rise” was chosen as the representative word for the housing market due to a global trend of rising interest rates. The Taiwan central bank raised interest rates four times that year in response to global inflation, contributing to an increase in housing prices.
The same term, “rise,” again dominated the housing discussions in 2023 as the central bank raised interest rates for the fifth time, and property prices surged amid higher commodity prices. In contrast, 2024 saw a stark shift towards the word “difficult,” as rising inflation and tightened mortgage conditions complicated homeownership.
Key News Stories of the Year
In addition to the word of the year, Taiwan Housing Trend Center also announced the top real estate news stories for 2024. The central bank’s seventh round of credit controls emerged as the most significant news event of the year, with 60% of online voters selecting it as the top story. Other key stories included reports on a money shortage in banks and the rise of mortgage rates, with some loans now carrying interest rates as high as 3%.
Another noteworthy story was the preferential mortgage program launched to support young adults and curb property speculation. This program, aimed at making homeownership more accessible to the younger generation, was ranked third in terms of significance this year.
Table: 2024 Taiwan Housing Market Word and Top News Stories
| Category | Top Pick | Details |
|---|---|---|
| Word of the Year | Difficult | 45.3% of voters chose “difficult” due to the challenges posed by inflation, high property prices, and tighter mortgage conditions. |
| Top Real Estate News Story | Central Bank’s Credit Controls | 60% of voters selected the central bank’s new round of credit controls as the key news event of 2024. |
| Second Place News Story | Mortgage Rate Hike and Bank Shortage | Rising mortgage rates (up to 3%) and a shortage of funds in Taiwanese banks highlighted financial instability in the housing market. |
| Third Place News Story | Preferential Mortgage Program for Young Adults | A program aimed at curbing speculation and supporting young homebuyers was also a major story in Taiwan’s housing sector. |
What’s Ahead for Taiwan’s Housing Market?
The 2024 housing market in Taiwan has been marked by uncertainty and tighter financial conditions. Despite the cooling market, demand for housing remains high, driven by inflation and the growing desire for property ownership. As we head into the next year, many analysts will be watching how the government’s policies, including credit controls and mortgage regulations, continue to affect housing prices and affordability.
FAQs: Key Insights on Taiwan’s Housing Market and 2024 Trends
1. Why was “difficult” chosen as the word of the year for Taiwan’s housing market?
The term “difficult” was selected due to the challenges facing homebuyers, including rising housing prices, inflation, and tightened credit controls that made it harder for people to buy homes.
2. What is the most significant news event in Taiwan’s housing market this year?
The central bank’s announcement of a seventh round of credit controls was the most significant news event, according to voters, impacting homebuyers and speculation in the market.
3. How did Taiwan’s housing market perform in 2024 compared to previous years?
While 2024 started with optimism due to a loan program for young homebuyers, the market cooled significantly following tighter credit controls, leading to a more challenging environment for property buyers.
4. What are the top stories related to Taiwan’s housing market this year?
Key stories include the central bank’s credit controls, rising mortgage rates, a bank shortage of funds, and the preferential mortgage program aimed at young adults.
5. How have mortgage conditions changed in Taiwan in 2024?
Mortgage conditions have tightened in 2024, with interest rates rising and credit restrictions limiting homebuyers’ ability to secure loans, contributing to the difficulty of purchasing property.
