The outside world expects housing prices to take a major hit after amendments act were passed. Scholars predict that the first wave of decline will be in the areas along Taoyuan Qingpu's airport MRT line, North Kaohsiung, Hsinchu, and Taichung's Beitun.
The Legislative Yuan passed the third reading on amendments to the Equalization of Land Rights Act on the 10th, dealing heavy blows to real estate speculation. Experts believe that it will help the housing market to cool down, and housing prices will slowly land softly. However, the key is whether local governments can enforce the law.
Chang Chin-oh, Retired Professor, NCCU: “The key is whether local governments will enforce the law. If pressure from interest groups caused local governments not to enforce the law, then this bill is worthless.”
The central government is working hard to amend the law to prevent loopholes in real estate speculation, but it also requires local governments to enforce the law. Experts expect that after amendments to the Equalization of Land Rights Act were passed, housing prices will see a major slump. They predict that the first wave of decline will be the most obvious in the areas along Taoyuan Qingpu's Airport MRT line, North Kaohsiung, Hsinchu, and Taichung's Beitun. Public infrastructure is not yet in place for these areas, but housing prices have risen ridiculously. Selling pressure is expected to gradually increase. However, some real estate experts believe that the government is not really trying to curb real estate speculation because the timing, direction, and targets are all wrong. Young people probably will not feel the impact of the new law.
Li Tung-jung, Real Estate Expert: “Prices have already cooled down. There's no room for it to fall anymore if you go after it. We should be targeting the main source of high housing prices, which is due to record-high land prices.”
Experts appeal to the government that the amendments were revised and passed in a hurry. They ask that subsequent laws must be drafted more rigorously, so as not to allow real estate speculation to revive again.