The Investigation of the Factors of Real Estate Price Fluctuation in Taichung city

• Main Authors: LIAO, SHIH-HSIEN, 廖士賢
• Other Authors: WU,GUANG-WEN
• Format: Others
• Language: zh-TW
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/7mhq6w

碩士 === 逢甲大學 === 經營管理碩士在職專班 === 105 === The real estate market in Taichung city has been experiencing a cyclical change since 25 years ago. It climbed to a peak in 1992, followed by a slope towards market low until 1997 when there was a slight reversal. Instantly, the economic was then struck by major events such as the financial crisis of Southeast Asia, Earthquake 921 and SARS. The resulting downturn market prolonged to 2003 when SARS was all clear. Consequently, the amendment to existing tax and government policies was able to take place, joining force to contribute to a new era of real estate boom. Nevertheless, the cycle started sloping down again in 2015 and continued to recent days. In fact, the fluctuation of property value is an integrated outcome of numerous key market behaviors of which its comprehensive interpretation is limited using only data analysis. For this reason, this paper focuses on qualitative analysis of six critical aspects of the real estate cycle, including Central Bank Policy, Tax Policy, Building Act, transport infrastructure, and regional characteristics. Research result shows that the government’s effort in controlling the upsurge of Taichung’s property value through acts and regulations has been considered effective in several ways. For instance, the imposition of luxury tax and the integrated housing and land tax system reduces speculators from the market. On the other hand, a seesaw battle between price cut sellers that aim to sell down and those who disagree is witnessed as a result of the less-restricted terms on real estate loan and lower interest rate. Also, due to prevailing regional characteristics and the improvisation of transport facilities, job opportunities rise in Taichung, along with the demand of real estate. At the same time, enhanced terms on transferrable development rights creates more businesses for contractors. Putting all together in effect, the revitalization of real estate market is seemingly optimistic in the near future.