Taipei taxes luxury
Even the prospect of the tax changes had an impact before being approved by legislators, with the number of property market transactions plunging by double digits. New Taipei City, which mainly consists of suburbs and satellite cities surrounding Taipei, experienced a decline of as much as 30%. As a consequence, home prices dipped 3% to 6% in different parts of the island last month. Potential buyers expect house prices to drop much further, possibly by as much as 5% to 10% in Taipei City and by as much as 20% in New Taipei City.
According to Chang Chin-Oh, a reduction of residential property prices of 30 to 40% is reasonable, depending on the location in the island, which means a meaningful price reduction has yet to get underway. Homebuyers who actually want to move in as opposed to making profit out of their purchase should wait until at least the end of the year to see the actual effects of the new tax, he said.
hattip: Aussie Roy at greaterfool