TAIWAN: Bubble Forming ?

TAIWAN: Fears of Bubble Forming


"CONCERNS are mounting over the risk of a housing bubble in Taiwan - as residential prices on the island jumped more than 15 percent year-on-year in the second quarter."


+ Sinyi Real Estate, said that Taiwan's home price index climbed more than 15.43 in Q2, from a year earlier


+ The Index surged a record 7.45 percent in Q2 over Q1


+ Prices have been rising for Four Years (says Amous Lee, of IP Global)


+ The sharpest rise was in Kaohsiung at 26.34 pct, in the south, while the gain in Taipei was 11.5 percent - where home prices average NT$5,568 (=HKD$ 1,459 psf)


+ The govt introduced cooling measures (luxury tax scheme) in June 2011, and is planning a review - second homes are taxed when sold within one year at 15 pct, and a 10 pct within two yar


> Tony Liaw, TheStandard, Nov.14th, page 17

Taipei ... where home prices average NT$5,568 (=HKD$ 1,459 psf)


Look cheap versus HK

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Taiwan's Central bank has kept its benchmark interest rate at 1.25 percent since Feb. 2009


This does "help" to form a Bubble