Home transactions and housing prices could remain unchanged or rise slightly in the first half of next year due to a relatively high comparison base this year, Taiwan Institute of Economic Research (TIER, 台灣經濟研究院) research fellow Arisa Liu (劉佩真) said on Thursday.
This year, the property market continues to be supported by historically low interest rates in a market awash in ample liquidity, while many equity investors have chosen to lock in their gains and reallocate money to real estate, Liu said.
Many people buy homes to fend off inflationary pressure, Liu said, citing a survey in which 66 percent of respondents preferred to invest in real estate, while 37 percent preferred equity markets.
Photo: I-Hwa Cheng, Bloomberg
The preference for investing in real estate is expected to continue to shore up the local property market next year, she added.
Business sentiment among property developers last month weakened from September, TIER data showed, as few new projects were launched, while the delay of projects by some property developers also made the industry cautious.
However, property sales in Taiwan remained strong, Liu said, citing a sequential increase of 11.3 percent in commercial and residential property transactions to 23,810 units in the nation’s six special municipalities last month.
Transaction growth was largely due to eased concerns over a domestic outbreak of COVID-19 cases, which prompted many property investors and home buyers to jump into the property market, and helped to keep home prices at relative highs, she said.
The central bank is likely to follow the US Federal Reserve in an expected cycle of rate hikes in the middle of next year, although local rates are expected to remain lower than the US Fed’s, while the hikes’ effects are likely to be acceptable to the property market, Liu said.
DISMAL OUTLOOK: A Citigroup analyst predicted firms face ‘the worst semiconductor downturn in at least a decade,’ due to inventory build and the potential of a recession Semiconductor stocks tumbled after Micron Technology Inc became the latest chipmaker to warn about slowing demand, triggering concern that the industry is heading into a painful downturn. In the US on Tuesday, the Philadelphia semiconductor index sank 4.6 percent, with all 30 members in the red, its biggest drop in about two months. In Asia, chip stocks from Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to Samsung Electronics Co, SK Hynix Inc and Tokyo Electron Ltd slumped. Investors are growing increasingly skittish as the notoriously cyclical industry is hurtling toward a prolonged slump after years of widespread shortages that led to heavy
With a tantalizing array of satay chicken, wok-fried mud crab and chilled tiger prawns, the dinner buffet at Singapore’s Grand Hyatt hotel typically sets diners back about US$70. Those on a tighter budget and with an eye on sustainability can fill a box for one-tenth of that price. Across Asia, tech start-ups are taking food otherwise destined for landfill and providing discounted meals through mobile phone apps. About one-third of food is lost or wasted every year globally, and the mountains of waste are estimated to cause 8 to 10 percent of greenhouse gas emissions such as methane, the UN says.
MAJOR REVENUE CONTRIBUTOR: The company said that it expects revenue this year to increase annually due to an improved smart consumer electronics outlook Hon Hai Precision Industry Co (鴻海精密) yesterday said revenue this quarter would be flat from last quarter, despite new phone models launched by key customers, as the market faces weakening demand. The iPhone assembler, based in New Taipei City’s Tucheng District (土城), said it is cautious about its business outlook, given mounting uncertainty regarding geopolitical tensions, soaring inflation and COVID-19 flare-ups, but still expects revenue this quarter to be higher than the NT$1.4 trillion (US$46.67 billion) it reported a year earlier. The forecast came as the company posted record second-quarter net profit of NT$33.29 billion, up 12 percent year-on-year from NT$29.78 billion.
Yageo Corp (國巨) yesterday said that its revenue would drop by a low single-digit percentage this quarter from a historical high last quarter, as customers and distributors are holding back demand to concentrate on inventory digestion due to flagging smartphone and notebook computer demand. The world’s biggest supplier of passive components expects to take three to six months to reduce its inventory of commoditized passive components to a normal level of 100 to 110 days, from 130 days currently. Yageo would reduce its factory utilization rate for standard passive components to about 60 percent this quarter, from about 70 percent last quarter,