Housing in Taiwan by William D.H. Li

Author:William D.H. Li [Li, William D.H.]
Language: eng
Format: epub
Tags: Social Science, General, Sociology
ISBN: 9780429851414
Google: YPmADwAAQBAJ
Publisher: Routledge
Published: 2019-01-15T04:51:12+00:00

Buying pre-sale house for investment

For this kind of buyer, the purpose of buying pre-sale houses is to increase their wealth, not to fulfil their housing needs. Mrs. B (cited above in 4.2.2) had more than three houses in Taipei city when she bought her pre-sale house. Some she used herself and others were rented. She told me:

Buying pre-sale houses is a kind of investment, a good way to guard against inflation. Buying pre-sale does not require a large amount of capital because of the low down payment and I can always sell it later; or when it is completed, I can rent it out.

Mr.F (IB Number 6) now stays with his brother's family. The reason he bought a pre-sale house was because he saw it as a kind of saving plan: 'if I put some money into a pre-sale house for two years I then own a house and the value of the house will be greater than the total amount of money I spent.' Such cases show that buying pre-sale houses are often seen as a kind of investment, where the pre-sale payment arrangement is an important factor in the decision to make it. It is important to note that investors in the housing market are not small in number as Table 23 demonstrates.

Table 23 shows the housing distribution in Taipei city in 1979 and 1989 according to individual households (houses owned by companies and other associations are excluded.) It shows that, in 1979, over 397,232 housing units were owned by 318,177 households (which is about 58 per cent of total households in Taipei)(the statistics do not discriminate between households who own ten and those who own more than ten units). In other words, about 58 per cent of households owned the total number of housing units in Taipei city. It is more interesting to note that among house owners in 1979, 15 per cent of the total had more than one housing unit and these households (which formed only 9 per cent of all households in Taipei) owned more than 32 per cent of total housing stock in 1979.

Table 23 House-owners in Taipei 1979, 1989

No. of houses owned by households 1979 1989 Growth rate (%)

1 269,335 478,913 77.8

2 34,394 64,966 88.8

3 7,327 15,264 108.3

4 3,706 6,284 69.5

5 1,455 2,810 94.5

6 722 1,446 100.2

7 336 765 127.6

8 255 525 105.8

9 165 343 107.8

Own 10 and over 10 units householders 482 1,064 120.7

Total no. of homeowners 318,177 572,380 79.9

Total no. of houses in Taipei over 397,232 over 725,781

Total no. of households in Taipei 542,041 787,664 45.3

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