Taipei, July 8 (CNA) Property prices in Taiwan are expected to stabilize in 2018 after an expected slight fall this year, according to U.S-based Standard & Poor's Global Ratings.
After a 4 percent fall in 2015, Taiwan's property prices have continued to fall but that is expected to be limited to 1 percent in 2016, S&P said.
Chou Yi-hua, an analyst with Taiwan Ratings, a local partner of S&P, said that property prices in 2017 are expected to fall about 1 percent, which indicates that market order is set to return.
Chou said that Taiwan's property market has been in consolidation mode from 2016-2017, ensuring prices should start stabilizing in 2018 and continue into 2019.
The analyst said that downside risks in the local property will be low over the next two years since interest rates in Taiwan have been low. She reiterated that local economic fundamentals are expected to remain sound over those two years, lending support to property prices.
After consolidating for a period, momentum in the local property market has shown signs of stabilizing slightly, with home buyers who seek residences for their own use returning to the market.
In June, transactions of residential and commercial property in the six major municipalities, which are most closely watched in Taiwan, hit 20,351 units, up 16 percent from May, when sales grew 16 percent month-on-month.
Transactions of homes, offices and shops in the six municipalities -- Taipei, New Taipei, Taoyuan, Taichung, Tainan and Kaohsiung -- rose about 20 percent from the previous year to 98,633 units.
