Before investing in real estate, it is crucial to conduct detailed market research. Understanding local housing price trends, demand and supply conditions, and future development trends can help you make wise investment decisions.
2. Geographical location
Location is critical to the success of real estate investing. Choosing an area with good transport links, schools and commercial facilities will usually result in higher rents and capital appreciation.
3. Financial planning
Develop a detailed financial plan that includes home purchase costs, maintenance expenses, taxes, insurance, and expected rental income. Make sure you can cope with possible periods of vacancy and unexpected expenses.
4. Legal Compliance
Be familiar with local laws and regulations, including leasing laws, land use codes and tax requirements. If necessary, seek help from a legal professional to avoid potential legal issues.
5. Property Management
Decide whether to manage the property yourself or entrust a professional property management company. Effective property management can increase rental income and maintain property value.
6. Long-term investment perspective
Real estate investing is generally long-term and requires patience. Market fluctuations are normal and losses may occur in the short term, but in the long term, real estate typically increases in value.
7. Risk assessment
Assess the risks of real estate investment, including market risk, interest rate risk, and economic fluctuations. A diversified portfolio can reduce overall risk.
in conclusion
Real estate investing is a potentially high-return investment option, but it also comes with risks. Through adequate market research and informed decision-making, you can increase your chances of success and obtain a good return on investment.
Real estate supply and demand related index
definition
The real estate supply and demand related index is an important tool used to measure the supply and demand situation in the real estate market and helps analyze the market's balance and future trends.
common index
housing vacancy rate
Refers to the proportion of houses on the market that are not rented or sold during a period of time. A high vacancy rate may indicate oversupply, while a low vacancy rate may indicate undersupply.
housing stock ratio
It represents the ratio of the number of homes currently available for sale in the market relative to monthly sales and is used to measure inventory pressure in the housing market.
Buy-to-ask ratio
It measures the ratio of buyers and sellers in housing transactions in the market over a period of time. A high value indicates strong buyer demand, while a low value may indicate a deserted market.
Number of new houses built
Reflects the number of new home construction starts over a period of time and is often used to assess the future direction of housing market supply.
Applications of indices
Analyze whether the real estate market is in a state of oversupply or undersupply.
Predict real estate price trends.
Provide a reference basis for policymakers to regulate the balance of market supply and demand.
Taiwan's current situation
Taiwan's housing vacancy rate has been relatively high in recent years, coupled with the high housing stock ratio, indicating that market supply exceeds demand. However, housing prices have not dropped significantly, reflecting market structural problems.
future trends
With policy controls and market adjustments, the supply and demand index may gradually stabilize. It is necessary to pay attention to the impact of demographic changes, economic development and other factors on the market.
How to buy a cheap house
Compare real estate information
Search multiple agency websites and set filter conditions such as price and location.
Pay attention to price changes and use historical house price records to determine whether there is room for negotiation.
Attend an open house to speak directly with the homeowner or agent.
Become a distinguished guest of the real estate agent
Contact the agent frequently to express your sincerity in purchasing a house and let the agent notify you of good properties first.
Establish long-term cooperative relationships and obtain internal, unpublished property information.
Take the initiative to ask agents during the off-season to increase your negotiating advantage.
Enter the real estate industry
Participate in real estate lectures and forums and get to know people in the industry.
Maintain good relationships with intermediaries and obtain inside market information through them.
Consider working as a real estate agent to be the first to know about low-priced properties.
Take the initiative
Contact the homeowner directly to avoid agency fees and get a better price.
Pay attention to foreclosure houses and silver auction houses, study the process, and look for low-priced bids.
Pay attention to properties that are for sale in a hurry or that are changing hands in a short period of time, such as those owned by immigrants or those with financial difficulties.
House renovation and value-added
Buy a house that is ready for renovation, evaluate the renovation costs, and lower the purchase price.
Learn house renovation techniques to reduce renovation expenses and increase return on investment.
Create additional value by renting or reselling your remodeled home.
Attention reminder
With increasing investment, although the acquisition cost decreases, the relative capital cost and time cost increase.
We must pay attention to the trend of the general market environment. When the market is bad to a certain extent, the short-term return rate may become negative. Be very careful not to over-leverage your funds at this time.
Real estate demand group analysis
first time buyers
First-time buyers refer to the group of people purchasing real estate for the first time, usually young people and newlywed families. Their needs are mainly concentrated in small square meters, high practicality and reasonable price.
Upgraders/house-changers
Upgraders are families who already own property but want to upgrade to larger, higher-quality homes, usually because of an increase in family size or a pursuit of a better living environment. They prefer medium- to large-sized residences and prime locations.
investment family
The purpose of investors buying real estate is to pursue capital appreciation or rental income, and they mainly focus on the development potential of the location and the appreciation space of the real estate. Their choices are usually concentrated in areas with convenient transportation and crowded areas.
Generally speaking, they can be divided into those who focus on capital appreciation are called investors, and those who focus on rental income are called financial managers.
retired people
The needs of retired people are concentrated in retirement homes, which emphasize the convenience of life and the quietness and comfort of the surrounding environment. They prefer areas close to medical facilities or natural landscapes.
foreign buyers
Most foreign buyers in the real estate market are interested in the investment environment and quality of life in a region. Their needs may include high-end residences or properties in specific school districts.
Factors affecting demand
Economic status: Economic prosperity and income level affect the ability to purchase a house.
Policy controls: policies such as loan restrictions and home purchase subsidies.
Demographic structure: changes in family composition, population mobility and birth rates.
Regional development: transportation construction, business development and educational resources.
Demand trends in Taiwan
Taiwan’s real estate demand groups are becoming increasingly diversified. First-time homebuyers have an increasing demand for small square footage, retirees prefer suburban residences with convenient living conditions, and investors continue to pay attention to the potential of urban areas and emerging development areas.
house price to income ratio
definition
The house price-to-income ratio is an important indicator of the affordability of house prices in a region. It is calculated as the average house price in the region divided by the average annual household income.
Calculation formula
House price to income ratio = average house price ÷ average household annual income
significance
This indicator reflects the financial burden of residents purchasing a house. The higher the house price-to-income ratio, the longer it takes for local residents to afford a house.
international standards
According to international experience, the price-to-income ratio is within a reasonable range between 3 and 5. If it exceeds 5, it means that the house price is on the high side, which puts the pressure on most families to buy a house.
Taiwan's situation
According to data in recent years, the housing price-to-income ratio in major cities in Taiwan generally exceeds international reasonable standards, and even exceeds 10 in some areas, indicating that residents have a heavy burden to purchase houses.
Influencing factors
Real estate market supply and demand conditions
Economic growth and wages
Policy impacts, such as loan interest rates and taxes
Countermeasures
The government can improve the problem of excessive housing price-to-income ratio by increasing the supply of housing, controlling real estate speculation, and raising salary levels.
Pre-sale house
definition
Pre-sale houses refer to houses that have not yet been completed, but have only completed the design and construction permitting stages, and are sold to the public first by the builder.
House buyers purchase the house through the sample house, construction drawings and contract conditions. After the construction is completed and the use license is obtained, the house is officially handed over and the property rights are registered.
Features
Payment method flexibility:Pre-sale houses usually adopt an installment payment system, with a lower down payment ratio, which can reduce initial financial pressure.
Customizable design:Some construction plans allow the buyer to choose decoration, layout or building materials during the construction stage, which is flexible and personalized.
Has future value-added potential:If the location or market improves, the price may rise after completion, creating potential returns for investors.
Price transparency:Pre-sale houses are mostly open to the public, and the construction information, floor plans and prices are relatively clear.
Risks and Cautions
The quality of the house delivered is uncertain:Actual finished results may differ from model homes or advertisements.
Builder’s credit risk:If the builder's funds are cut off or goes bankrupt, the project may be delayed or even stopped.
Market price fluctuations:If the economy declines or house prices correct, the price after completion may be lower than the purchase cost.
The contract terms are complex:Pre-sale houses are "signed first, handed over later", so you should carefully review the sales contract and performance guarantee conditions.
Performance guarantee system
In accordance with the Equalization Ordinance and "Items that should and must not be recorded in the pre-sale housing sale and purchase agreement",
Pre-sale homes must have a "performance bond", usually provided by a bank, insurance company or trust institution, to ensure:
The builder can complete the construction project and hand over the house on time.
The money paid by the buyer is deposited in a special account and cannot be misappropriated at will.
If a dispute occurs or the builder is unable to perform the contract, the guarantee agency can assist in refunding or completing the construction project.
Bank loan and payment process
Pre-sale house loans are mostly processed during the house delivery stage. The process is as follows:
Signing stage: Pay deposit and down payment (usually 10% to 15% of the total price).
Construction stage: Payment in installments according to progress, about 3 to 5 installments.
House completion: apply for a mortgage, handle transfer and property rights registration.
Some banks offer "construction period loans" or "pre-sale housing loan projects" to help buyers obtain loans or lock in interest rates before completion.
Comparison with existing houses
project
Pre-sale house
existing house
buying stage
Not yet completed
Available for immediate move-in
Payment method
installment
one loan payment
Source of risk
Builder credit and construction uncertainty
House condition and structural issues
Appreciation potential
Depends on location and market changes
relatively stable
Summarize
Pre-sale houses are favored by owner-occupiers and investors due to their payment flexibility and value-added potential, but they also come with construction, legal and credit risks.
Home buyers should carefully choose a reputable builder, read the contract carefully, and confirm the performance guarantee mechanism to reduce potential risks.Purchasing a house rationally, making prudent evaluations, and staying away from the myth that "house prices will always rise" are the only ways to achieve sound asset allocation.
Commonly used real estate information websites in Taiwan
Website name
Main functions
URL
Ministry of Interior Real Price Login Inquiry Service Network
The most complete official real-price login, with each house number, price, transaction date, and building square footage
Famous for the large-scale landmark projects that followed Taipei 101, the product line covers residential, commercial and corporate headquarters buildings. In recent years, it has actively promoted luxury projects such as Farglory THE ONE and Farglory 95.
Xingfufa Construction
The king of case promoters in Taiwan, with the largest case volume, and its layout covers Shuangbei, Taoyuan, Hsinchu, Taichung, and Kaohsiung. His representative works include the "Xing Fu Fa Run Long", "Run Sheng", and "Bo Xue Yuan" series.
Runtai Global Construction
A subsidiary of Runtai Group, it focuses on high-end residential and commercial properties. It is famous for projects such as "Runtai Jingzhan", "Runtai Yucheng" and "Dunhua SOGO". In recent years, it has launched "Runtai Weifang" luxury homes.
Cathay Construction
Cathay Group's products are mainly medium and large square footage luxury homes such as "Cathay Fu", "Cathay Summit", "Cathay Mushan", etc. It attaches great importance to green buildings and sustainable design.
Changhong Construction
Deeply cultivated in Xindian, Zhongyonghe and Banqiao, the representative brands are "Changhong Tianxi", "Changhong Xintianmu" and "Changhong Tianrui", which are famous for their exquisite quality.
Baojia Organization
It is the largest construction agency group in Taiwan. Its brands include Jia Guilin, Kunshan, Huaxian, etc. It has a large case volume and focuses on first-time purchase and house replacement products.
Fubon Construction
A subsidiary of Fubon Group, it specializes in luxury homes and iconic commercial properties, with its representative projects such as "Fubon Tomorrow World", "Taipei Sky Tower" and "Fubon Art Tree".
Hongpu Construction
An index builder in Central Taiwan, Taichung Phase 7 has the most rezoning proposals, represented by the "Hongpu Star" and "Hongpu Central Park" series.
Mainland construction
Taiwan's number one luxury brand, with representative works such as "Runtai Dunren", "Crown of Mainland Xinyi" and "Tao Zhuyin Garden", famous for its architectural aesthetics and top-notch craftsmanship.
Huagu Construction
Famous for its luxury series such as "Huagu Mingzhu", "Huagu Tianzhu" and "Huagu New Generation", it focuses on the egg yolk area in the elite area of Beijing City.
Ri Shengsheng
Well-known agency construction works in parallel with its own brands. Its representative works include "The Westin Risheng Shengjing Station Hotel" and "Happiness Praise" series. In recent years, it has launched the "Jinghua Plaza" luxury house.
Guande Construction
Deeply cultivated in Neihu, Dazhi and Chongyang sections, the representative works are "Guande Louvre", "Guande Fudu" and "Guande Yuchen", which are famous for their European architectural style.
Sakura Construction
A benchmark builder in Taichung and Kaohsiung, Taichung's representative projects are "Sakura for Happiness" and "Sakura MOMA", and Kaohsiung has the "Sakura Academy" series.
Jusheng Construction
Kaohsiung is a local construction company specializing in art museums and the 16th Agricultural Special Zone. Its representative works are "Jusheng Crystal Pan" and "Jusheng Imperial Palace".
By Ju Construction
Representatives of luxury homes in Taichung, the masterpieces "Yuju Rizhi", "Yujujuqian", and "Yujuhanbi" are famous for their ultimate craftsmanship and low construction coverage rate.
Taiwan's major real estate agency
The following are Taiwan's major national real estate agency brands, ranked according to market share, with links to their official websites:
Sumisho Real Estate
Zhushang Real Estate is the largest real estate agency brand in Taiwan, with more than 600 stores, providing professional house sales and leasing services.
Xinyi Housing adopts a fully direct-operated system, emphasizing corporate governance and information transparency. It has approximately 486 directly-operated stores and provides diversified services such as buying and selling and leasing.
Yongqing Real Estate Group adopts a multi-brand strategy and owns brands such as Yongqing House, Yongqing Real Estate, Youchao House, Taiqing Real Estate, and Yongyi House, with a total of approximately 1,522 stores.
Taiwan Real Estate Group adopts a business model that combines direct operation and franchising. It owns Taiwan real estate brands with a total of approximately 343 stores.
CITIC Housing was established in 1985. It is a full-franchise system that emphasizes safety, professionalism and dedicated service concepts. It has approximately 260 stores.
Dongsen House is a real estate agency brand under Dongsen Group. It adopts a franchise system and combines media resources to provide a full range of real estate services and has approximately 181 stores.
Pacific House adopts a business model that combines direct operation and franchising to provide diversified real estate services and has approximately 176 stores.
Century 21 Real Estate is an internationally renowned real estate agency brand that adopts a franchise system and has approximately 116 stores in Taiwan.
The above information comes from the official websites and public information of each brand. The actual number of stores may change. Please refer to the latest announcement of each brand.
Mediation in house purchase and sale price negotiation
What is mediation
"Mediation money" is an advance payment made by the buyer to express his sincerity and entrust an intermediary to negotiate. If the seller accepts the offer, the mediation money is automatically converted into a deposit and the contract is established. If the negotiation fails, the mediation fee will be returned to the buyer and is not legally binding.
Good Offices vs Letter of Offer
Mediation money: pay first, high psychological pressure but strong sincerityLetter of Offer: Written offer, no upfront payment required, better buyer protection
Negotiation process steps
1
Confirm the target transaction price and study the nearby actual price login market
2
Determine the bid amount, usually 5% to 15% lower than the asking price, adjusted according to the condition of the house and market popularity
3
Fill out the mediation power of attorney or offer letter, specifying the bid price, validity period, and the amount of the mediation fund.
4
The agent mediates with the homeowner on behalf of the owner and waits for a reply (usually 1 to 3 days)
5
The owner accepts → Convert to deposit and sign sales contract; the owner counter-offers → Evaluate whether to continue negotiation or return
bid strategy
Calm down the market: you can test it by 10% to 15% lower than the asking price.
Popular items: The gap is reduced to less than 5% to avoid losing bids
If the house is in poor condition: you can ask for a discount on repair costs
For items whose asking price is the lowest price: increase the earnest money and shorten the payment period
Mediation amount
Generally 100,000 to 500,000, adjusted according to the total price of the object
The higher the amount, the stronger the pressure and sincerity on the seller.
The validity period is usually set at 2 to 5 days
If there is no consensus at the end of the period, all the money will be refunded.
Negotiation Skills
Check the actual price beforehand and use data to speak rather than feelings.
Find out the weaknesses of the property (house age, floor, layout, house condition) as reasons for price reduction
Don’t go all the way to your lowest price at once, and keep room for further increases.
Set a stop loss point, give up if the budget is exceeded, and avoid chasing high prices
You can ask the agent to disclose the reason why the owner is eager to sell, which will help determine the room for price concessions.
Intermediaries serve both buyers and sellers, and their interests are not entirely on the side of the buyer. Keep abreast of market conditions during negotiations and do not rely entirely on agency advice.
Common results and corresponding methods
Seller accepts
→ Confirm contract details, arrange signing and house inspection
Seller's counteroffer
→ Evaluate the rationality of the counter-offer and decide whether to bid again or withdraw.
Negotiations break down
→ Mediation money is refunded, look for the next object
Things to note
Mediation payments must be recorded in writing and must not be promised verbally
Confirm that the validity date and refund conditions are clearly stated in the mediation letter
After successful negotiation, be sure to arrange a professional home inspection before signing the contract.
Make sure the property rights are clean, there are no seizures, and there are no illegal constructions before signing the contract.
Administrative Executive Office, Ministry of Justice
Real estate auction information provided by the Legal Department, including auction date, location, reserve price and other information. Users can go to the official system to check the real estate foreclosure announcement.
Juheng Housing Network aggregates foreclosure house information from various courts and provides detailed auction announcements and object information, which is suitable for general user inquiries.
The Bank of Taiwan also provides a foreclosure house inquiry service, allowing users to filter suitable auction objects based on region and auction price.
Long-term tracking of legal auction data requires a combination of official macro statistics and private case history data. The following are key platforms that provide data analysis and website links:
Ministry of Interior Real Estate Information Platform
Data highlights:Provide statistics on the number of auction transfers.
Track value:The quarterly and annual reports for previous years can be downloaded in the statistical information area, which are important indicators for studying the long-term growth and decline of foreclosure cases across Taiwan and various counties and cities, and for judging the prosperity of the housing market.
Data highlights:The latest foreclosure cases announced by various local courts.
Track value:Although it does not provide statistical charts, it is the source of all foreclosure data, including the most accurate bottom price, number of auctions and seizure record information.
Transparent Housing Information 104 Forensic Lawyer Network
Data highlights:Complete foreclosure history records and transaction price statistics.
Track value:It has a huge historical database that can track the auction records of specific objects in the past decades, and provide comparative analysis of foreclosure transaction prices and real price registrations.
Data highlights:Taiwan-wide auction information and foreclosure data map.
Track value:Provides professional foreclosure statistical research reports, combined with geographical information systems, to facilitate users to track the distribution and price trends of foreclosure items in specific areas.
Comparison of platform data features
Platform category
Good for tracking content
update frequency
government official
Overall market transfer volume, long-term trend chart
Updated quarterly/yearly
Private payment
Historical bidding records, accurate transaction prices, and auction rates
Instant updates
Free to the public
Specific object tracking, basic case screening
Daily updates
It is recommended that you first observe the general trends from the Ministry of the Interior platform, and then use private databases such as Transparent Housing Information or Broadband Housing Information to conduct in-depth price tracking in specific areas.
Financial management mortgage
Basic concepts
Financial management mortgage is a kind of financial product that "combines the functions of mortgage and credit loan".
Borrowers can flexibly withdraw funds and make repayments within the approved limit.
Usually the house is used as security, the maximum loan amount is set, and the interest is calculated based on the actual amount used.
How it works
The bank sets a "recyclable" mortgage limit, for example, up to 5 million.
The borrower can use part of the amount initially, and can use it later or make partial repayments according to needs.
Interest is only calculated on the actual amount used and can be reused after repayment.
advantage
Flexible use of funds, suitable for those with irregular funding needs.
The interest rate is usually lower than that of a general credit loan, reducing the interest burden.
The repayment method is flexible and can be partially or fully repaid in advance.
shortcoming
It is easy to cause excessive borrowing, so capital control needs to be cautious.
If house prices fall, you may face the risk of insufficient collateral value.
The bank may re-examine the limit and conditions every year.
Suitable for objects
Those who have stable income and need flexible allocation of funds.
Those who want to consolidate multiple loans into a single account and reduce interest costs.
Those with good credit records and collateral value.
Xinqingan mortgage
Overview
"New Qing'an Mortgage" (full name: New Preferential Loan System for Young People to Start a Family with Peace of Mind) is a policy mortgage program launched by the Taiwanese government from August 2023 to assist young people in purchasing homes.
Led by the Treasury Department of the Ministry of Finance and co-organized by eight public banks, it provides young first-time homebuyers with low interest rates and long-term loan programs.
To reduce the financial pressure in the early stages of home buying.
Eight public banks hosted
bank of taiwan
land bank
Cooperative Treasury Bank
first bank
South China Bank
Changhua Bank
Mega Bank
Taiwan Small and Medium Enterprises Bank
Eligibility
Age: Applicants must be over 20 years old.
Nationality: Only nationals of the Republic of China.
Name conditions: There is no self-owned residence in the name of the loan applicant, spouse and minor children.
House use: limited to self-occupation, not for rental or commercial use.
Area scope: limited to residences on the main island of Taiwan and its affiliated outlying islands.
loan terms
Loan amount: up to NT$10 million.
Loan ratio: up to 80% of the appraised or transaction price of the house.
Loan term: up to 40 years.
Grace period: In the first 5 years, you can choose to only pay interest and not repay principal.
Interest rate discount: The fixed interest rate is 1.775% for the first two years, and the flexible interest rate starts from the third year (China Post two-year fixed deposit interest rate + 0.565% starting).
Early settlement: Most banks waive liquidated damages or only charge handling fees.
Features and Advantages
The government subsidizes the interest, and the interest rate is lower than that of ordinary commercial mortgages.
It provides a repayment period and grace period of up to 40 years, with low upfront pressure.
It can be combined with a home purchase loan guarantee fund to increase the success rate of loan approval.
All eight public banks can apply, so the choice is highly flexible.
Limitations and Notes
Restricted to first-time buyers, no self-owned residence is allowed under their name.
The upper limit of the loan amount is limited. If the amount of the house purchase is too high, you will need to prepare a larger down payment.
The interest rate is flexible. If the interest rate rises in the future, the repayment burden will increase.
If you rent out or resell your home, you may lose your interest subsidy eligibility.
Application process
Confirm that you meet the qualifications (age, no house under your name, self-occupied use).
Prepare documents: ID card, household register, house purchase contract, financial resources or salary certificate.
Apply to any of the eight public banks.
The bank conducts credit review and appraisal.
After the loan is approved, the contract is signed and the appropriation and transfer procedures are completed.
in conclusion
The New Qing'an Home Loan is an important policy of the Taiwanese government to assist young people in purchasing homes. It provides low-interest and long-term loans through public banks.
Although interest rates are favorable, long-term repayment capabilities and housing market risks should still be carefully evaluated.
When buying a house, you should base your purchase on the principle of "focusing on owning your own home and living within your ability", and avoid excessive leverage or speculative house buying behavior.
Mortgage limit trial calculation formula
1. Use the "monthly affordable amount" to infer the loan limit
The mortgage amount can usually be calculated backwards from the "monthly affordable mortgage amount".
Commonly used calculation formulas are as follows:
1. The formula for equal amortization of principal and interest (monthly payment)
When you want to infer the loanable limit: Loan amount = monthly payment × ( (1 + r)^n − 1 ) / ( r × (1 + r)^n )
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2. Estimating the maximum loan amount based on "bank review rules"
1. Judge by “income”: DSR (debt burden ratio)
The bank will calculate the maximum affordable monthly mortgage payment based on "monthly income".
Assuming bank specifications:
DSR upper limit = 40% (common range 30% ~ 45%)
Calculation method: Monthly payment available for mortgage = Monthly income × DSRExample: If monthly income is 80,000 yuan, DSR = 40%
Monthly payment available for mortgage = 80,000 × 0.4 = 32,000 yuan
Then enter the "loan amount formula" to get the maximum amount.
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2. Determine based on "House Appraisal": LTV (Loan to Value)
The final loan amount depends on: Loanable amount = min (amount that can be supported by income, house appraisal × LTV)Common LTV in Taiwan:
First purchase: 80% ~ 90%
General loan: 70% ~ 80%
Legal persons, investors, old houses: 40% ~ 60%
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3. Sample calculation (demonstration of deducing the loanable limit)
condition:
Annual interest rate: 2%
Loan term: 30 years
Monthly income: 80,000 yuan
DSR：40%
Step 1: Calculate available monthly payment
80,000 × 0.4 = 32,000 yuan
Step 2: Use the formula to reverse the amount
r = 2% ÷ 12 = 0.001667
n=360
After substituting into the formula, we get: Maximum loan amount ≈ 7.8 million(This is an approximation of the standard bank calculation model)
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4. Simplified version of trial calculation formula (quick estimate)
If you need to quickly estimate the loan limit, you can use the common "multiples method":Loan amount ≈ Monthly repayment amount × 300 ~ 340This multiple corresponds to:
Interest rate 1.7%～2.2%
term 30 years
Example: You can repay 30,000 yuan per month
→ Approximately 30,000 × 330 ≈ available for loan9.9 million
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Summarize
The calculation of the mortgage amount mainly depends on:
Revenue (DSR)
House Valuation (LTV)
Interest rate and loan period (affecting the loanability ratio)
The most accurate way is still:Calculate the affordable monthly payment first → Bring in the mortgage formula → Compare with the appraised priceThe bank will adjust the final limit based on risk review, so it is recommended to compare with 3 to 5 banks.
Only by maintaining rationality and sound debt planning can you use mortgage leverage safely.
Actual Review Factors for Mortgage Amount Receipts and Expenditures
1. What DSR (Debt Service Ratio) really covers
Most people think that DSR only looks at "income", but in fact banks will also consider:
monthly income(Salary, bonus, rental income...)
all existing liabilitiesIncluding: mortgage, car loan, credit, student loan, credit card installment, revolving, policy loan, etc.
short term liabilitiesSuch as: credit card outstanding balance, consumer loans, small installments, etc.
Living expenses estimate(Internal bank regulations)
The bank will estimate the minimum living expense threshold based on family size, age, and city and include it in the calculation.
Therefore, DSR is not as simple as "income × ratio". It depends on whether the remaining debt can support a new mortgage after deducting all existing liabilities and living expenses.
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2. Bank’s DSR calculation method in practice (simplified representation)
DSR = (total monthly repayments on all loans) ÷ (monthly income)But the bank will add the following prerequisites:
Credit card revolving → The monthly payment is calculated as the revolving balance × 10%~15%
Credit card outstanding → may be included in the liability with a fixed factor (e.g. 5%)
Guarantor → Depending on the bank’s policy, some will be included in the calculation
Short-term loans → always included in liabilities
Living expenses → Although not included in DSR, it will affect "whether to approve"
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3. The bank’s actual review process: whether it meets the standards, it must be approved
The bank calculation process can be simplified as follows:
Confirm whether the source of income is stable (salary transfer, withholding vouchers, tax filing materials, etc.)
Calculate all liabilities and monthly payments
Check whether it complies with DSR (varying from 35% to 45%)
Estimated family living expenses
→ If the remaining amount after deducting living expenses is insufficient, the bank may not approve it.
Appraisal of house value → Determine LTV (loan to loan ratio)
Even if you qualify for DSR, you may still be denied a loan by a bank as long as your living expenses are insufficient or your debt structure is not good.
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4. Comprehensive formula (bank internal conceptual model)
Maximum mortgage monthly payment ≈ monthly income − (monthly payment of existing debt + minimum living expenses)Available mortgage amount = Maximum monthly mortgage payment × Mortgage formula inversion coefficient(Usually 300~340 times)
The bank will then compare it with the "appraisal × LTV" and choose the lower one as the final loan limit.
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5. Summary
Practical mortgage review is far more complicated than most people imagine:
DSR not only looks at income, but also looks at the overall liability structure
Both short-term and long-term liabilities will affect the loan limit
The living expenses threshold will affect the loan approval, not the DSR indicator on the formula
Even if the formula is passed, the loan will be rejected due to low appraisal value, professional risk, credit record, etc.
Conclusion: Mortgage limit = DSR (income and liabilities) + living expenses review + appraisal value (LTV) jointly decided.To increase the limit, in addition to increasing income, you can also first improve the liability structure, clean up short-term liabilities, and compare multiple banks to find the most lenient review standards.
Disposable income multiple
Concept introduction
"Disposable income multiple" is also often called by banksRepayment ability multiple, is an additional "cash flow soundness" indicator used by some banks in addition to DSR (debt ratio) in home loan review.
It is used to measure:Whether the borrower's total monthly income is sufficient to cover total expenses and leave a sufficient financial cushion.
Total monthly income:Salary, bonus average, fixed rental income, etc.
Total monthly expenses:Existing loan (monthly payment), credit card fixed obligation expenditure, estimated living expenses, estimated monthly mortgage payment, etc.
Differences from DSR
DSR is "monthly payment of all liabilities/income", focusing on the proportion of liabilities;
The disposable income multiple is "income/expenditure", focusing on overall living allowance.Although the two directions are opposite, they both reflect the financial pressure of borrowers.
Bank common standards
Each bank has different standards for multiples, but the common reference ranges are as follows:
2.0 times or more:Good financial margin and good repayment ability
1.5 ~ 2.0 times:Acceptable, subject to other review conditions
1.0 ~ 1.5 times:On the tight side, you may be asked to reduce the amount or add an insurance policy holder.
<1.0 times:Expenses are greater than income, and in most cases the loan cannot be approved
Why do banks need this multiple?
Because DSR cannot take into account factors such as living expenses and household expenses,
The disposable income multiple (repayment ability multiple) more completely reflects the actual cash flow.
It can help banks reduce borrowers' future default risks.
Simple example
Monthly income: 90,000
Monthly expenditure: including existing loan + living expenses + future mortgage = 45,000
Disposable income multiple = 90,000 ÷ 45,000 = 2.0 times
→ Meets the safety standards of most public banks
redistricting
definition
Redistricting refers to the area where the government re-plans and integrates land in specific areas in accordance with relevant regulations such as the "Municipal Redistricting Regulations" or the "Section Expropriation Regulations". Its purpose is to improve the urban development structure, increase land use efficiency, improve the configuration of public facilities, and promote local construction and real estate market development.
Types of redistricting
City redistricting:It is carried out jointly by the government or landowners to increase the value of regional land through the rezoning of public facilities such as roads, parks, and schools.
Sectional collection:Under the leadership of the government, the entire section of land is expropriated and then redistributed. The landowners can receive part of the rezoned land or compensation.
Urban renewal area:It prefers the redevelopment of old urban areas and is led by private or public institutions. It is similar to the concept of redistricting but has different purposes.
Relationship with urban planning areas
The urban planning area is the overall development scope designated in accordance with the Urban Planning Act, including residential areas, commercial areas, industrial areas and other different uses.
Redistricting areas are usually located within urban planning areas and are specific implementation areas for urban development. Through land reorganization, the original problems of insufficient infrastructure or low land use efficiency can be improved.
In other words,The Urban Planning District is responsible for the overall blueprint planning, while the redistricting district is the implementation unit that implements the development.
development characteristics
Land prices are low initially, but have high potential to rise as public facilities and construction are completed.
Life functions are insufficient at the beginning, but have strong potential for growth in the future.
It attracts more developers to promote projects and first-time homebuyers.
The urban planning is complete, with straight roads, novel buildings and a high proportion of green space.
advantage
The infrastructure is complete and the living quality is high.
Roads and public facilities are well planned and the environment is tidy and novel.
It has long-term value-added potential, especially if purchased in the early stages of construction.
In the future, the commercial functions of the living area will gradually take shape, and housing prices will have strong support.
Disadvantages and Risks
The initial living functions are insufficient and need to wait for construction to be completed.
Builders are promoting concentrated projects and the short-term supply is large, so prices may fluctuate.
If government construction is delayed, regional growth will stagnate and investment returns will decline.
Some redistricting areas have too many lots, immature transportation, and long investment periods.
Finance and Loan Conditions
Land and buildings in rezoned areas are generally regarded by banks as lower-risk assets due to their characteristics such as "clear legal zoning," "high ratio of public facilities," and "predictable completion of construction."
When banks in some areas evaluate housing loans, the loan ratio, amount and interest rate conditions for properties in rezoned areas will be better than those in non-rezoned areas.
Even in some cases, a house with the same conditions can be approved for loan if it is located in a rezoned area, but cannot be loaned if it is located in a non-rezoned or agricultural area.
The main reasons are that the rezoning area has public facilities, complete transportation planning, high circulation, and low bank recovery risk.
Examples of major redistricting in Taiwan
Taipei City:Neihu Phase 5 rezoning and Nangang Economic and Trade Park.
New Taipei City:Linkou A9, Danhai New Town, Xindian Yangbei are rezoned.
Taoyuan City:Qingpu High-speed Railway Special Zone and Middle Road Rezoning Area.
Taichung City:The seventh phase of rezoning, Shuinan Economic and Trade Park, and the fourteenth phase of rezoning.
Tainan City:Plain redistricting, South Coast special districting.
Kaohsiung City:The 16th Agricultural Rezoning Area, the Art Museum Special Zone, and the Yawan New Bay Area.
Investment and home buying advice
There is a price advantage in the initial stage, but attention should be paid to the construction progress and population introduction.
Avoid excessive pursuit of high prices and observe actual residential demand and transportation development.
If you live for yourself, you can choose an area with school districts, parks and convenient transportation.
If it is an investment, you should set up a mid- to long-term holding plan to avoid short-term fluctuation risks.
When applying for a loan, you can compare the rezoning loan conditions of different banks and have the opportunity to obtain higher loan ratios and lower interest rates.
in conclusion
Redistricting represents an emerging force in urban development, with both planning improvement and value-added potential.
Banks generally have a high opinion of redistricting, and loan conditions are relatively friendly to home buyers.
However, it is still necessary to carefully evaluate regional development progress and market supply and demand, and do not invest blindly.
Taipei City Housing Price Index
Analysis of building penetration and location effects
A complete dismantling analysis of location effect vs product type effect - taking the Banqiao housing market from 2003 to the present as an example
Background of the times
2003: The historical bottom of Taiwan’s real estate market
2003 was a critical year when Taiwan's real estate market hit bottom after more than ten years of recession. Starting from the third quarter of 1993, Taiwan's housing price index has fallen by approximately 30% cumulatively, and 2003 was the end of this long downward cycle.
The financial conditions at that time were extremely loose: interest rates were at record lows, mortgage loans could be obtained at almost 100%, and the grace period design of only paying interest for the first two years made it technically possible to "buy a house without a down payment." However, market confidence is weak and the SARS epidemic hit Taiwan hard in the first half of the year, so most home buyers are still on the sidelines. Looking back afterwards, this was one of the best opportunities for Taiwan to enter the market in modern times.
Banqiao in Taipei County (now New Taipei City) was then a satellite city in the first circle of Taipei City. The overall housing price was about the average price in Taipei City.50 to 40% off. Although the MRT Fuzhong Station and Xinpu Station have opened in downtown Banqiao, the housing market is far less popular than it is today.
Quotes in 2003
Newly built house in Banqiao Building: buying cost of 2 bedrooms and 30 square meters
In 2003, the unit price per square meter of buildings in Banqiao urban area can be divided into three levels according to the location:
location
Unit price per square meter
Total price of 30 square meters
Around Fuzhong and Xinpu MRT
About 120,000 to 140,000/square meter
About 3.6 million to 4.2 million
Puchang and Jiangzicui areas
About 100,000 to 120,000/square meter
About 3 million to 3.6 million
Outskirts of Fuzhou and Xikun
About 80,000 to 100,000/square meter
About 2.4 million to 3 million
Based on the Banqiao city center building, the average price of a new house with 2 bedrooms and 30 square meters is approximately between 3.3 million and 4 million.
What can I buy with the same budget?
With the same budget of 3.5 million to 4 million, the purchasing conditions in each region are as follows:
area
Extreme conditions
Remark
Outskirts of Banqiao
The ground floor is about 8 to 12 square meters, the 2 to 3 floors are exposed to the sky, and the house is 15 to 20 years old.
The urban area is extremely scarce and the layout is small.
Tucheng
The floor area is about 15 to 18 square meters, with 3 floors and 3 or more rooms.
The house price is about 20% cheaper than Banqiao
forest
The ground is about 20 to 25 square meters, 3 floors, and may have a small parking space.
Living functions are slightly inferior, but the space is large
Three Gorges
The floor is 25 to 35 square meters, near the sky, 3 to 4 floors, with parking space
In 2003, it was still a rural area with inconvenient transportation.
Increase analysis
"The building beats the sky" or "Banqiao beats the suburbs"? The truth after controlling variables
Preliminary comparisons often lead to the conclusion that "Banqiao Building has the highest price increase", but this conclusion is also mixed with two factors: location advantage and product type advantage. To truly clarify, these two variables must be viewed separately.
The following four-grid matrix, with a fixed purchase budget of about 3.6 million in 2003, respectively compares the 2026 present value growth of Banqiao Essence and Suburban, Building and Sky:
Banqiao Essence Area
Tucheng/Shulin (suburban area)
elevator building
About 21.6 million An increase of about 6 times
About 14 million to 16 million An increase of about 4 times
Through the sky
About 12 million to 15 million Increased by about 3 to 4 times
About 14 million to 18 million Increased by about 4 to 5 times
Three key axes of comparison
Comparison axis one
Inside Banqiao: Building vs Toten
The growth rate of the building (about 6 times) is significantly better than that of Banqiao Xiaotoutian (about 3 to 4 times). Banqiao urban area has small floor space and difficult alleys to renovate, making it impossible to fully absorb the added value of the location. The building is blessed by the MRT and the living functions of the Egg Yolk District, and demand continues to be strong.
Comparison axis two
Between the Sky: Banqiao vs Suburbs
The most unexpected one. The growth rate of suburban Datoutian (approximately 4 to 5 times) is not inferior to that of Banqiao Xiaotoutian (approximately 3 to 4 times). The land itself is a core asset due to its large land area. Even if it is located in a remote location, it still has good value-added performance.
Comparison axis three
Inside Suburbia: Building vs Sky
The growth rate of suburban buildings and Tuotian is similar, about 4 times the difference between each other, and the difference is not significant. If the location is not strong enough, the effect of the product type will be diluted.
Comparison axis four
Location effect vs product type effect
The location effect is far greater than the product type effect. The reason why Banqiao Building has the largest increase is due to the double multiplication of two advantages. If any one of them is missing, the increase will be significantly reduced.
Toutian’s hidden advantage: land holdings
Purchasing a house with Tuotian Construction is equivalent to purchasing land. The land ownership is completely owned by the homeowner. There is no problem of public virtual flats in community buildings, and all households live in real flats. More importantly, if there is a need for urban renewal or self-renovation in the future, the decision-making flexibility of Tuotian homeowners is much greater than that of residents in the building community, and there is no need to wait for the consent of other divided owners.
This makes Suburban Datoitian still have long-term option value that the building does not have even if the book increase is not outstanding. On the other hand, Banqiao's Xiaotoutian has a floor area of only 8 to 12 square meters, making it difficult to renovate and with limited land assets. This advantage is not obvious.
Core conclusion
The answer to this backtest question in 2003 can be summarized into three points. First, what really drives the high growth rate of Banqiao Building is the location advantage, not the product type of the building itself. Second, in prime locations, the building is indeed better than the small one, but the reason is that the urban floor is too small to fully enjoy the location bonus, not because the building is inherently better than the small one. Third, the large land in the suburbs is the hidden player that is most often ignored. The value of the land has increased by as much as the small one in Banqiao. Buying the right location is more important than choosing the right product type; but in elite areas, if land conditions are limited, choosing a building is a more pragmatic decision.
Three major categories of elevator buildings
The classification of buildings is not only the height of the floors, but also involves the mandatory requirements for structural safety and fire protection facilities by regulations. These requirements are directly reflected in utility ratios, management fees and long-term asset values.
Building type definition boundaries
In Taiwan, the classification of building types is usually based on height (meters) as the legal basis, and the number of floors is a rough correspondence commonly used in the market:
Elevator Building (Low-rise Apartment):Refers to elevator buildings with 7 floors or less (including 7 floors). According to regulations, the height is less than 21 meters and the structure is relatively simple. Old mansions before 2005 were mostly single-escalator designs with extremely low public utility ratios.
Standard Building (Mid-rise Building):Refers to elevator buildings with 8 to 15 floors (or height less than 50 meters). This is the most common type in urban Taiwan. Emergency lifts are required for buildings above 31 meters tall, and automatic sprinkler systems are required for buildings above 11 floors.
High-rise Building:Refers to buildings with more than 16 floors or a height exceeding 50 meters. It must undergo strict "structural external review" and has the highest regulatory requirements. Usually equipped with double staircases, smoke exhaust rooms and high-standard refuge spaces, the public utility ratio is usually the highest.
Asset status analysis of standard buildings (8-15 floors)
Standard buildings are the "golden mean" in the real estate market. Their asset characteristics are between land value-oriented luxury buildings and function-oriented super-tall buildings.
1. Balance between structure and space
Standard buildings mostly use RC (reinforced concrete) structures, unlike super-tall buildings that require expensive SRC or SS steel frames. This means it has a moderate replacement cost and a relatively strong and stable structure. When a house is 25-30 years old, the wear and tear on its exterior walls and public spaces is usually within control, unlike super-tall buildings that require astronomical maintenance costs.
2. Land holdings and resilience
Although the land holdings of a standard building are not as high as those of a 7-storey luxury building, they are much higher than those of a 28-storey super-tall building. Taking a 500-square-meter site as an example, the land allocated to residents of a 12-story building can usually maintain a certain "guaranteed value." When the age of a house reaches 40 years, the unit price of a standard building can usually be maintained at 60-65% of a new house. The main support comes from the combination of "land" and "mature living area".
3. Management fees and maintenance costs
This is the biggest advantage of the Standard Building. Since there are no expensive fire pumps, refuge floors and high-speed elevator maintenance required for ultra-tall buildings, their management fees are usually relatively affordable (about NT$60-80 per square meter to operate well). This makes it extremely liquid in the secondary market as the holding burden on the next buyer is minimal.
Comparison table of value characteristics of various types of assets
Analysis Dimensions
Elevator Tower (7th floor)
Standard Building (12-15 floors)
Super tall building (more than 16 floors)
public ratio
Minimum (15% - 25%)
Moderate (28% - 32%)
Highest (33% - 38%)
land gold content
Highest
Moderate
lowest
Du Geng/Potential for endangering the elderly
extremely high
Possible (depending on floor area ratio)
extremely low
Liquidity (ability to change hands)
Moderate (low total price)
Highest (widest audience)
Depends on brand and location
Summary: Who is Standard Building suitable for?
If you want your assets to resell well after 20 years and don’t want to pay exorbitant management fees, “standard buildings” with 12 to 15 floors are the safest choice. It avoids the shortcomings of a tower that may lack round-the-clock property management, and also avoids the huge future maintenance expenses and land dilution risks of super-tall buildings. In new development areas, standard buildings are often the first choice for owner-occupiers, and their value retention is very balanced.
Elevator building age and unit price
When observing housing prices of houses of different ages in the same year, the concepts of "replacement cost" and "construction ratio" must be introduced. The reason why the unit price of old houses will not fall to zero is because the land value contained in them increases with inflation, and the replacement cost of the building (current construction cost) increases due to the increase in both labor and materials, which raises the price floor of all house age groups.
Relative proportion of unit prices of houses of different ages (100% based on 5-year-old houses)
Assuming that in the same administrative district, with the same floor and builder level, the unit price distribution of elevator buildings is roughly as follows:
House age (years)
Relative unit price ratio
Price driving core factors
5 years
100%
Premium prices for new homes, modern regulations, and complete public facilities.
10 years
92% - 94%
The halo of new houses disappears and the house enters the early stage of stable depreciation.
15 years
85% - 88%
Public equipment (elevators, electromechanical equipment) has entered the first wave of maintenance period.
20 years
78% - 82%
The physical value of buildings declined significantly, and land values began to dominate.
25 years
72% - 75%
Exterior walls are aging, risks of water leakage are increasing, and market liquidity is weakening.
30 years
68% - 72%
The marginal effect of depreciation is diminishing, and housing prices are close to the "land value floor."
35 years
65% - 70%
Price fluctuations are minimal, with inflation boosting land values offsetting building depreciation.
40 years
65% - 75%↑
inflection point:For those with greater potential, unit prices have begun to rebound beyond those of 30-year-old houses.
Compensating effects of inflation and replacement costs
Why can the unit price of a 40-year-old elevator building still remain at more than 60% of that of a 5-year-old new house?
Cost of raised floor:Twenty years ago, the building cost may have been only 80,000 yuan per square meter, but today the replacement cost has reached 200,000 yuan. This means that even if the value of an old house is depreciated by 70%, its "residual value" converted back to cash in today's inflationary context is still higher than the original cost in that year.
Land holding value:Although the land holdings of elevator buildings are smaller than those of apartments, in elite areas (such as Taipei and Taichung Xitun), the appreciation rate of land is often higher than the depreciation rate of buildings. When comparing in the same year, the high land equity value of an old house will significantly increase its unit price.
Residential functional maturity:Buildings that are 30 to 40 years old are mostly located in prime areas of early development, and their "location premium" makes up for the "age disadvantage".
Variable correction after statistical normalization
To be more precise in your analysis, you must exclude the following "spurious variables":
Postulate ratio correction:The public facilities ratio of the old building is low (below 20%), while the new building has a high ratio (above 33%). If compared based on the "unit price of indoor actual square footage", the gap between 30-year-old and 5-year-old houses will be further narrowed.
Floor area ratio correction:The floor area ratio of early buildings is different from the current regulations. The "excess floor space" contained in some old buildings is very valuable when they are replaced, and this will be reflected in their unit prices.
Summary: In the Taiwan market in 2026, the relationship between house age and unit price will not decline linearly, but will enter a stable period in about 30 years due to the support of land value and replacement cost. If the property is located in a more economical area, the unit price of a 40-year-old house may even show an upward slope.
super high-rise building
Due to their special structural regulations and maintenance logic, the price trend of super high-rise buildings (more than 15 floors) shows the characteristics of "slow depreciation, delayed plateau period, but extreme end-term liquidity."
1. The “floor effect” of smaller land holdings is weakened
The first point you mentioned is very critical: because of the high floor area ratio and large number of households in super-tall buildings, a single household will be allocatedVery small land holdings。
Anti-drop support transfer:General buildings will rely on land value to support 50% of house prices in 40 years; super-tall buildings will rely more on"Building Replacement Cost"。
Price sensitivity:Due to the weak land guarantee, once the building equipment (such as ultra-high-speed elevators, dampers, building curtains) becomes obsolete and the management committee is unable to maintain it, the risk of its unit price falling below 50% is higher than that of ordinary buildings. However, under the background of inflation in 2026, as long as the "cost of building a new building" continues to increase, the unit price of old super-tall buildings will still be supported.
2. The solid structure leads to the disappearance of “all expectations”
This is the biggest asset feature of super-tall buildings:Almost none is more likely。
Long physical life:Most of the super-tall buildings are SRC (steel reinforced concrete) or have higher-standard seismic reviews, and the structural life can reach 70-100 years. This makes the phenomenon of “rebound in 40 years” unlikely to occur in super-tall buildings.
Integration threshold:Too many households lead to a geometric increase in the difficulty of integration.
in conclusion:Its price curve will not "rebound" in 40 years, but will form aExtremely long horizontal decline line。
Revised price curve for super-tall buildings (relative to ordinary buildings)
House age stage
General building trends
Trend of super tall buildings
Core Differences in Super Tall Buildings
0-15 years
Depreciation 1.5% per year
depreciation per year< 1%
Brand and Scarcity:The high-floor landscape and structural security ensure strong value retention.
15-30 years
Quickly fell to 65%
Stable at 75% - 80%
Maintenance threshold:Super-tall buildings usually have more professional property management, which delays the occurrence of "old feeling".
30-45 years
Enter 50% floor period
Slowly dropped to 60% - 65%
The price decline will slow down and be postponed:Because the function of the building is still better than that of ordinary buildings of the same age, but it lacks more support.
50+ years
Because they are more expected to rebound
Continuing to be flat or slightly down
Pure residential value:The price depends entirely on "whether the management committee has the money to replace the elevator."
Asset perspective: Super tall buildings are "residential consumer goods" rather than "land savings"
If you are purchasing a super-tall building in Xitun District (such as the seventh-phase target construction project):
The slowdown in depreciation is indeed delayed:When you sell at 25 years, you may still be able to retain 75-80% of the new home price per unit, which is 10-15% more than a typical building is worth.
Medium and long-term risks:When a house reaches 50 years of age, ordinary buildings may be acquired by builders because the land is valuable; super-tall buildings may face an embarrassing period of old facilities but too high repair costs.
Summary: Super tall buildings are herewithin 30 yearsThe value retention is better than that of ordinary buildings (the price decline does slow down and be delayed); but50 years later, its asset liquidity will be lower than that of a general building. This is a game between "building quality" and "land rights".
Price of old elevator building
When the age of a house crosses the threshold of 40 years, the composition of housing prices will undergo structural qualitative changes. Building entities are no longer the protagonist of pricing, replaced by "land holdings" and "policy premiums."
Why is the price difference between 40 and 60 years so small?
From the value composition formula:
$$ V = L + B - D + R $$
L (Land)：land value. This part does not decrease with the age of the house, but increases with inflation.
B - D (Building - Depreciation)：The value of the building is less depreciation. When the house is > 40 years old, this value approaches zero or only 5% of the residual value in accounting terms.
R (Reconstruction)：Rebuilding (Du Geng/Danger Lao) value.
Since B - D is already zero for both 40 and 60 years, the base price (L) is exactly the same for both. In the absence of better expectations, the unit prices of the two will almost only fluctuate in sync with the regional market, and will not fall again because of the age of 10 years.
Key variables: Dugeng premium and financing gap
Although the physical value is not different, the market price may vary slightly due to the following two extreme factors:
House age section
Pricing logic
Market advantages and disadvantages
40-45 years
Residual value support period
There are still some banks that are willing to undertake 20-30-year loans (if the structure is safe). Circulation is highest in old houses.
50-55 years
Financing watershed
Negative factors:The bank loan period is limited (usually requires house age + loan period< 75 或 80）。買方需準備更高自備款，導致單價受壓制。
60+ years
Game value period
Positive factors:The physical life of the building is close to its limit, and the urgency of upgrading and endangering the elderly is extremely high. If it is located in a prime area, the unit price may exceed that of a 40-year-old house due to "renovation expectations".
"Old house price counterattack" in reality
In Taiwan in 2026, you will observe a phenomenon: the unit price of a 60-year-old elevator building is sometimes more expensive than a 30-year-old building. This is not because the house is easy to live in, but because:
Advantages of indoor solid floor:The public utility ratio of early buildings was extremely low (even less than 15%), and the usable area under the same building plot was much larger than that of new buildings. If converted into "actual unit price per square meter", old houses are actually relatively cheap.
Large land holdings:In the early days, building regulations were looser, and the number of households covered by the same base area may be smaller, and the land allocated to them would hold larger shares. This was the strongest bargaining chip during the capital reform.
Benefits of elderly care policy:Buildings over 50 years old meet the conditions of critical age and are eligible for additional volume bonuses. This "paper value" will be directly reflected in the unit price.
Conclusion: The price difference is really small, unless "financing" or "remodeling" is involved
Barring a structural safety red flag (such as a sea sand house or failure of seismic reinforcement), the price difference between 40 and 60 years is really minimal. The only major disconnect is thatbank loan: If the buyer cannot obtain a 70% loan for a 60-year-old house, its total price will be locked by the buyer’s cash affordability, creating a price ceiling.
Value Comparison between Elevator Building and Tuotian House
In the real estate market, home buyers are often faced with the decision of "buying the functionality of a building" or "buying a piece of land." When the total prices of the two are similar, there are significant differences in the asset structure, depreciation logic and future potential behind them. The following is an in-depth comparison based on core values, land holdings and long-term holding risks.
Essential differences in asset composition structures
The total price of real estate is composed of "land value" and "building value". Over time, buildings depreciate, while land increases in value with inflation and development.
Elevator buildings (especially mid- to low-level floors):The building value accounts for a relatively high proportion of the total price. Although land holdings are relatively small, they are usually located in prime areas with high floor area ratios (such as around high-speed rail stations and along MRT lines). Its value is supported by the convenience and rental income brought by the location.
Tuotian house at the same price:The total price is almost supported by the value of the land. In order to meet the same total price as the building, this type of skylight is usually located in an area with a relatively remote location, narrow alleys, or an extremely old building (even requiring full renovation). The nature of its assets is closer to "land savings".
The hidden value of land holdings and floor area ratio
When assessing the value of land, you cannot just look at the number of square meters. You must combine the floor area ratio (the proportion of the total area that can be built on the land) to calculate the effective value.
Assessment project
7-story elevator mansion (25-30 years)
Same price as Laotou Tianchu
land holdings
Less (about 7-10 ping)
Very high (about 20-30 ping)
land properties
Mostly high-volume residential or commercial areas
Mostly low-volume residential areas or remote alleys
Depreciation sensitivity
Building depreciation still affects the total price
It has fallen and has nothing to fall, and it is completely subject to the fluctuation of land prices.
All have more potential
Requires integration of multiple households, medium difficulty
Independent property rights and high flexibility for independent development
The trade-off between residential functionality and ownership costs
In addition to asset value, cash flow and maintenance convenience during the holding period are also the keys to success.
Advantages and Risks of Elevator Buildings
Advantages:Equipped with elevators, centralized garbage disposal, mail collection and property management. Such properties are extremely competitive in the rental market and can generate stable cash flow to offset loan interest.
risk:The maintenance costs of public facilities (such as elevators and generators) after 30 years will need to rely on a sound management committee and sufficient public funds. If management fails, housing prices will lose their functional support.
Advantages and risks of old age
Advantages:There is no need to pay management fees, and the land ownership is intact. If the government expropriates or rezones the area in the future, there is huge profit potential.
risk:Maintenance is all done by yourself, and the cost of repairs such as water leakage and aging wires is staggering. And due to the age of the house and the low residual value of the building, it may not be possible to obtain a high-percentage loan during bank appraisal, resulting in an increase in the threshold for self-prepared funds.
Conclusion: How to make a choice based on your needs
If your purpose is to preserve asset value and you hope to have higher liquidity and rental efficiency, choosing a "high floor area ratio, next to a high-speed rail station, low-floor building" is a better compromise. It uses the added value of the location to make up for the depreciation of the building. If you have the ability to repair and your goal is to hold multiple land holdings for a long time to wait for area flipping or inheritance, "Old Tou Tian" with the same total price is a more pure land investment target.
Analysis on the decline of Japanese real estate bubble objects
From two different benchmarks: the peak in 1992 and the starting point of the bubble in 1987, we analyze the real profits and losses of various locations and types of objects in the long downward cycle. The conclusion is completely counterintuitive in several ways.
Basic understanding
Let’s dispel a common misunderstanding first
Many people believe that "after the bubble collapses, big cities should be the most resilient." The actual data in Japan is exactly the opposite.
From 1992 to 2000, residential land prices in the six major cities fell by about 55%, while the decline in small and medium-sized cities was only 19.4%. The decline in large cities was much greater than that in small and medium-sized cities. The reason is simple: the bubbles are thickest where they rise the most, and they naturally fall the deepest.
From the peak in 1991 to 2000, commercial land prices across Japan fell by more than 70%, and residential land prices fell by nearly 50% on average.Some prosperous areas saw declines as high as 80%. Tokyo housing prices continued to fall until 2005. Compared with the peak in 1988, they fell by about 67%, basically returning to the 1985 level.
Based on the 1992 peak
Ranking of declines by region and type
Object type
peak to trough decline
illustrate
Tokyo’s central business district (Ginza, Shinjuku)The deepest fall
About 70~80%
Speculation is the most rampant, bubbles are the thickest, and there is almost no bottom after demand collapses
Six major urban residential areasseriously injured
About 55~65%
Metropolitan average, including mixed declines across housing types
New town building in the suburbs of the metropolitan areaseriously injured
About 40~55%
In suburban new towns where Tokyo office workers were forced to move, vacancy rates soared after demand froze
National average residential land valuemedium
about 49%
The demand for owner-occupancy is still there, but the demographic structure has begun to turn.
Local small and medium urban housingRelatively resilient
About 20~30%
There are no big bubbles, the digestive pressure is small, and the fluctuations are relatively mild.
Small apartment for rent near the city centerRelatively resilient
Prices fall but rental yields rise
Falling selling prices actually increase yields, attracting investors to take over at low prices.
The three most fall-resistant objects
Throughout the down cycle, several categories of objects have shown relative resilience, each for different reasons.
The first is owner-occupied housing in local small and medium-sized cities. These places have never experienced crazy bubble growth. Housing prices are originally based on real housing demand, so there is not much bubble to digest, and the decline is relatively gentle.
The second is a small rental apartment close to the center of Tokyo. This is the most counter-intuitive category. Although there has been a sharp decline in the city center, the rental demand for small houses near the station continues to be stable. The drop in selling prices has actually increased the yield, forming a relative price support bottom.
The third is the "living station front" object with complete commercial functions in front of the station. Even if land prices continue to fall in local cities, items in front of stations may still be sold at relatively high prices, because when the population shrinks, demand unequally converges towards nodes with concentrated living functions.
Based on 1987
The real profit and loss of those who entered the market at the starting point of the bubble
Taking the 1992 peak as the benchmark, what is measured is "how much people who bought at the top fell." But if we use 1987 - the starting point when the bubble really started to surge - as the benchmark, we are asking another question: "Did people who entered the market at the early stage of the bubble make money or lose money in the long run?"
Academic circles generally regard 1987 as the launch year of the Japanese bubble: economic expansion, accelerated money supply, and a significant increase in the land price increase rate. All three conditions were met at the same time. That year, commercial land in Tokyo increased by about 80% compared with the previous year, and residential land in the Tokyo area also increased by about 22% in the same year. The following year, in 1988, it rose by another 69%.
Judging from Japan's nationwide public land price data, the average price per square meter was approximately 1.18 million yen in 1987, peaked at 2.13 million yen in 1991, and dropped to approximately 590,000 yen in 2005. Conversion result: If I bought it in 1987 and held it until the bottom in 2005, I would still have a nominal loss of about 50%.
Complete ranking of the deepest declines based on the 1987 benchmark
Local places (resorts such as Atami and Karuizawa)After the legislation was passed in 1987, companies vigorously promoted local resorts. In 1988, some areas experienced a surge of more than 20%. This type of object had no growth at all before 1987, but was speculated to rise 2 to 4 times in just a few years. After the collapse, demand evaporated and returned to zero. For those who bought in 1987, the book losses at the bottom were about 60 to 80%, and the liquidity was extremely poor, making it almost impossible to sell. This is the invisible category with the deepest decline in the 1987 benchmark and is often ignored.
Tokyo business districtIn 1987, it was already taking off rapidly (the commercial area increased by about 80% that year). If the average purchase price of 6 to 8 million yen per square meter was estimated in that year, there would be about 4.49 million left in 2005, and the nominal loss was still about 30 to 50%. After deducting the 20-year holding cost, tax burden and inflation erosion, it is a completely negative return.
Housing in new towns outside the metropolitan area (Tama, Chiba, Saitama, etc.)In the late 1980s, land prices in the city skyrocketed, forcing a large number of home buyers to move to the outer suburbs. In places like Tama New Town, half of the residents commute for more than an hour. After the bubble burst, the effect of returning to urban centers accelerated, and suburban demand shrank for a long time. For those who bought in 1987, the nominal losses at the bottom were about flat to a small loss, but the real losses were significant after adding in holding costs.
Average residential land value in six major citiesIn 1987, it was already in the early stage of the bubble, and the average buyer suffered a nominal loss of about 20 to 40% at the bottom, and the holding cost ate up another layer.
Owner-occupied residences in local small and medium-sized citiesThe relative loss is minimal, ranging from about flat to a small loss of about 15%. However, looking at the long-term index of 100 in 1975, the growth rate of local residential land has lagged behind the consumer price index for a long time, which means that the real purchasing power is also negative, but the negative amount is relatively small.
Core differences between the two benchmarks
Object type
Based on the 1992 peak
Based on the starting point of the bubble in 1987
Tokyo business district
The deepest drop (-70～-80%)
Still falling deeply (-30～-50%)
place リゾート地
Deep drop (-50～-70%)
The deepest fall (-60～-80%) hidden champion
Suburban new town in the metropolitan area
Serious injury (-40～-55%)
Nominal balance, real loss
Local small and medium urban housing
Relatively resistant to decline (-20～-30%)
Still a loser, only lose the least
Small house for rent near the central station
Selling prices fall but yields support
Still the most resistant type in the long run
Reversal 20 years later: Why is Tokyo a winner again?
Since 2024, the price of second-hand apartments in the three central districts of Tokyo (Chiyoda, Chuo, and Minato) has increased much more than in other areas, and some items have exceeded the bubble high in 1990. However, the gains in suburban areas such as Kanagawa, Saitama, and Chiba clearly showed head consolidation.
This illustrates an important rule: where the market falls the deepest, it will rebound the highest when demand returns. But this reversal requires a prerequisite—population and employment must continue to concentrate in core cities. Japan has reached this premise, but local cities are still continuing to slowly decline.
It can be seen from the long-term data of the Ministry of Land, Infrastructure, Transport and Tourism that the highest price of commercial land in Tokyo's 23 wards has exceeded the bubble period level, but the average land price of residential land has still not returned to the 1991 level in most areas. This means that a large proportion of people who bought residential land in 1987 have still not recouped their original investment after waiting for nearly 40 years.
Core conclusion
Taking the 1992 peak as the benchmark, it is correct to say that "big cities fell the deepest and local cities were the most resilient." However, this conclusion only applies to measuring the damage of the bubble itself. Using the starting point of the bubble in 1987 as a benchmark, almost all types are losers. The only difference is that they lose more and lose less.
The hidden champion that truly fell the deepest was the local market - it had no fundamental support before 1987, but was briefly boosted by regulatory dividends and speculative funds. Once the bubble burst, it returned to zero, and it almost never comes back.
The only ones that have been relatively stable throughout the cycle are small rental houses that are close to the city center. Although the selling prices have fallen, the actual demand for rentals has provided the bottom support for the yield. They are also the first type to rebound after 2013. This law has direct reference significance for any market facing a demographic transition.
Top 10 short-term real estate crash cases in the world
1. Japan, Tokyo and other metropolitan areas (1989–1992)
Period: from the second half of 1989 to mid-1992.
Decline: About 70% or more, urban land and residential prices fell sharply.
Supplement: From 1991 to 2009, Japan's housing prices showed a long-term downward trend, with the national average price falling by about 50% cumulatively, and it has not fully recovered in nearly 20 years.
2. Las Vegas, USA (2006–2010)
Period: mid-2006 to 2009–2010.
Drop: About 50–60%.
3. Ireland, mainly Dublin (2007–2010)
Period: mid-2007 to mid-2010.
Decline: Residential properties fell by about 35%, with the highest price in Dublin being 56%.
4. Spain Madrid, Barcelona, etc. (2007–2013)
Period: from 2007 to the end of 2013.
The cumulative decline is approximately 45%, with annual declines reaching 9–10% in some areas.
5. Los Angeles and Phoenix, USA (2006–2009)
Period: 2006 to 2008/2009.
The decline can reach 30–40% in some urban areas.
6. San Jose, San Francisco, United States (1989–1995)
Period: late 1989 to 1995.
Real house prices fell by about 40%.
7. Toronto, Canada (1989–1996)
Period: from 1989 to 1996.
The average decline in the Greater Toronto Area is more than 27%.
8. Baltic States (Estonia, Latvia, Lithuania) (2007–2009)
Period: from mid-2007 to 2009.
House prices fell by more than 40%, especially in Latvia.
9. Dubai, United Arab Emirates (Q1 2009)
Time period: Within the first quarter of 2009.
Housing prices in some areas have fallen by approximately 40% in the short term.
10. China First-tier and some Second-tier cities (2021–2025)
Period: 2021 to 2025.
House prices in some cities have fallen by approximately 20-30% in four years.
Conclusion: Real estate also has risks
Global history proves that housing prices do not always rise.
The real estate market is affected by factors such as interest rates, policies, demographic structure, and the financial system. Severe fluctuations may cause heavy losses.
When investing in real estate, you need to carefully assess your financial affordability, regional fundamentals and risks of future changes, and do not blindly pursue high prices or perform excessive leverage operations.
Japanese real estate
Market overview
The Japanese real estate market is known for its stability and attractiveness, especially in major cities such as Tokyo, Osaka and Kyoto. International buyers are increasingly interested in residential and commercial properties in Japan.
Major city real estate
City
Features
Average house price (per square meter)
Tokyo
Capital, economic center, convenient transportation
About 1 million to 3 million yen
Osaka
A commercial center with a low cost of living
About 800,000-2 million yen
Kyoto
Cultural and historical city, tourist hotspot
About 700,000-1.5 million yen
Purchase process
Find the right real estate agency or website.
Select a property and schedule a site visit.
Negotiate price with seller or agent.
Sign the purchase contract and pay the deposit.
Complete tax payment and title registration.
Common taxes and fees
Tax name
proportion or amount
real estate acquisition tax
3%-4% of property valuation
registration tax
0.4%-2% of house price
fixed asset tax
1.4% of property valuation (annually)
Investment advantages
Stable rental income.
Legal protection and transparent investment environment.
Fluctuations in the Japanese yen exchange rate provide additional profit opportunities.
Common websites for real estate buying and selling in Japan
1. National real estate platform
SUUMO（スーモ）One of the largest real estate platforms in Japan, operated by Recruit Holdings.
Provides information on new construction, apartments, second-hand houses, land, rentals, etc. across the country, with many filtering conditions and frequent updates.
LIFULL HOME'SIt has a large amount of housing information and can be searched carefully based on conditions such as region, route, school district, construction year, etc.
It also provides house price trend charts and loan calculation tools.
at homeOne of Japan's traditional real estate information websites. It has a large number of properties and is suitable for searching for second-hand apartments and houses.
Support foreigners search and Japanese-English switching interface.
Yahoo!Real EstateCooperate with multiple builders and agents to integrate new construction, apartment, land and leasing information.
The website interface is intuitive and the search speed is fast.
2. Website dedicated to foreigners buying houses
RealEstate.co.jpA Japanese-English bilingual real estate platform designed specifically for foreigners, supporting major cities such as Tokyo, Osaka, and Kyoto.
Provides home buying guides, visa and loan information.
Japan PropertyJapan’s official JLL is an English platform that cooperates with real estate developers, focusing on the foreign investor market.
The information is transparent and the real estate is highly authentic.
Rethink TokyoContains real estate news and analysis articles on the topic of life and investment for expats in Japan.
Suitable for medium and long-term investors' reference.
Mansion Global JapanThe Japanese branch of the international real estate media Mansion Global, covering high-end residential and investment properties.
Provides English interface and market reports.
3. Local and high-end real estate websites
Sumitomo Real EstateA real estate company under the Sumitomo Group, it focuses on high-end residences, apartments and commercial offices in Tokyo and Osaka.
Provide services for corporate expatriates and high-net-worth individuals.
Tokyo カンテイA housing price evaluation and market analysis website focusing on the Tokyo metropolitan area.
Suitable for comparing locations and prices before investing.
4. Suggestions for use
It is recommended to use multiple websites for cross-price comparison to confirm the authenticity of the property and the reasonableness of the price.
Pay attention to whether it is marked "Media Company (Agent)" or "Vendor (Direct Sales)". The agency fee is approximately 3% of the house price + 60,000 yen.
Foreigners who want to buy a house can look for an agency with English or Chinese services, or use foreigner-friendly platforms such as "RealEstate.co.jp".
Summarize
The Japanese real estate market has transparent information and diverse platforms, but each website focuses on slightly different areas.SUUMO、HOME’S、at homeSuitable for general owner-occupiers and investors.
AndRealEstate.co.jp、Japan PropertyOthers are specially designed for foreigners buying houses.
Before the actual transaction, the ownership of the object, management fees, fixed asset tax and exchange regulations should be confirmed.Only through rational comparison and prudent decision-making can you find valuable targets in the Japanese real estate market.
Japan mortgage
Loan Overview
Japan’s real estate loan policies are relatively friendly to foreigners, but certain conditions need to be met, including residence qualifications, income sources and credit records. Foreign buyers can usually apply for a property loan ratio of 50%-70%.
Loan type
Loan type
Features
fixed rate loan
The interest rate is fixed and suitable for long-term investment.
floating rate loan
Interest rates adjust with the market and are suitable for short-term purchases or falling interest rate trends.
hybrid loan
The interest rate is fixed in the early stage and converted to floating interest rate in the later stage, taking into account stability and flexibility.
Application conditions
Age limit: Usually 20-65 years old.
Stable income: Provide proof of income, such as salary or self-employed income records.
Credit Assessment: Good credit history.
Residency qualifications: Japanese residency status helps improve the loan approval rate, but some banks accept non-residents.
Application process
Choose the right bank or financial institution.
Submit loan application and relevant documents (passport, income certificate, real estate information, etc.).
The bank conducts credit assessment and property review.
Get loan approval and sign contract.
Complete property purchase and loan disbursement.
loan interest rate
Loan type
Interest rate range (year)
fixed rate loan
1.0%-2.5%
floating rate loan
0.5%-1.5%
Things to note
Foreign currency loans: Some banks provide foreign currency loans, but you need to pay attention to exchange rate risks.
Early repayment: Learn about early repayment fees and conditions.
Insurance requirements: Loans often require mortgage or fire insurance.
Apply for a Japanese mortgage loan from a Taiwanese bank
Loan Overview
In Taiwan, some banks provide loan services specifically for purchasing Japanese real estate, which is suitable for buyers who do not have Japanese residence status or who want to take advantage of Taiwan's financial resources. Such loans usually need to be secured by existing assets or real estate, and the interest rates and loan terms may be slightly higher than those of local Japanese banks.
Suitable for objects
Those who plan to purchase real estate in Japan but are unable to apply for a loan from a local bank in Japan.
Investors who own Taiwan real estate as collateral.
Buyers who wish to use Taiwanese funds for overseas investments.
Application conditions
Age limit: between 20 and 65 years old.
Proof of income: Stable job income or other legal sources of income.
Good Credit: Credit score meets bank standards.
Collateral: Local real estate in Taiwan or other acceptable collateral is required.
Application process
Choose Taiwanese banks that offer Japanese real estate loans, such as Fubon, Taishin, CITIC, etc.
Talk to your bank and find out about loan product terms and interest rates.
Prepare application documents, including passport, income certificate, Taiwan real estate information and Japanese real estate purchase contract, etc.
The bank conducts credit assessment and collateral review.
Get loan approval, sign contract and close disbursement.
Loan terms and interest rates
condition
illustrate
loan ratio
50%-70% of the house price (depending on collateral and personal credit).
loan interest rate
2.0%-4.0% (depending on bank policy).
loan term
Maximum 15 to 20 years.
bank
Amount
Restricted area
Taishin Bank
Minimum 150 million yen. Appraisal price is 70%.
Tokyo 23 wards, Kanagawa, Osaka
China Trust
50 million to 500 million yen. Appraisal price is 60%.
Tokyo 23 wards, Yokohama part
first bank
The minimum is 40 million yen for individuals and 100 million yen for legal entities. Appraisal price is 70%.
Tokyo, Kanagawa, Chiba, Saitama
Yushan Bank
Minimum 60 million. Appraisal price is 70%.
Tokyo 23 wards
Things to note
Exchange rate risk: Since loans are issued in New Taiwan dollars, the impact of exchange rate fluctuations needs to be considered when purchasing Japanese real estate.
Collateral evaluation: Banks will evaluate Taiwan's collateral, which will affect the loan amount.
Cross-border taxation: Understand the relevant tax policies of Taiwan and Japan to avoid additional burdens.
Early repayment conditions: Confirm whether the loan allows early repayment and related handling fees.
Obtain financing funds from Japanese real estate
Do banks in Taiwan accept overseas real estate as collateral?
Taiwan banks generally only accept "real estate in Taiwan" as loan collateral.
Japanese real estate is an overseas asset, and Taiwanese banks cannot establish mortgage rights or enforce enforcement in Japan in accordance with the law.
Therefore, even if you have purchased a Japanese house in full, it will be difficult to use the property to obtain a mortgage loan from a Taiwanese bank.
Main reasons for limitations
Legal restrictions:Taiwanese financial institutions are unable to establish valid mortgage rights across borders.
Difficulties in risk control:Lack of control over the value and liquidity of Japanese real estate.
High difficulty in execution:Even if the borrower defaults, it will be difficult for the bank to dispose of the asset to pay off the debt.
Viable alternatives
Japanese local bank loan:You can apply for a mortgage or financial loan from a Japanese bank, using the property as security.
Loan secured by Taiwan assets:If you still have real estate in Taiwan, you can use the Taiwan real estate as a mortgage and use it flexibly after obtaining the funds.
Private Credit or Asset Proof Loan:Some Taiwan wealth management institutions may provide credit products that use overseas assets as credit reference, but the interest rates and thresholds are higher.
Suggested direction
If you want to use Japanese real estate as a resource to obtain funds, your first choice should be a local financial institution in Japan.
If you are unable to obtain a loan in Japan, you can instead use Taiwan assets to raise funds and use funds indirectly.
It is recommended to consult a cross-border asset management consultant or a professional international mortgage loan bank for planning.
Taiwanese apply for Japanese bank mortgage
Can I apply for a Japanese bank loan?
Taiwanese can apply for real estate loans from some Japanese banks, even if they are not Japanese nationals.
The regulations of different banks vary greatly, and whether you can get a loan depends on the bank's policies, personal background and property conditions.
Some banks require proof of residence or work visa in Japan, but some banks accept non-residents (such as SinoPac Trust, Sumitomo Mitsui Trust, Rakuten Bank, etc.).
Common application requirements
Be over 20 years old and have a stable income.
Have good credit record and repayment ability.
Some banks require a bank account or guarantor in Japan.
The loan amount is usually 50% to 70% of the house price, subject to adjustment on a case-by-case basis.
Prepare documents
Passport, residence card (if applicable), resident card or certificate of residence (if applicable).
Proof of income and assets: such as salary slips, tax returns, and deposit certificates from Taiwan.
House purchase contract, real estate information (real estate registration transcript, title deed, etc.).
Loan application form and basic personal information.
loan process
1️⃣ Select the property and sign the reservation purchase contract.
2️⃣ Submit a loan application to the Bank of Japan and submit relevant information.
3️⃣ The bank conducts review and property appraisal.
4️⃣ After passing the review, sign the loan contract and set the mortgage rights.
5️⃣ The bank transfers funds to the designated account to complete the delivery of the house purchase.
Banks and financial institutions to contact
Sumitomo Mitsui Trust Bank:Provide loan services to non-Japanese residents, with some language support.
SBI Shinsei:Accepts Taiwanese buyers and has a special program for foreigners.
Rakuten Bank:The Internet is highly accessible, the application process is simplified, and some real estate agents can handle it on your behalf.
ORIX、ARUHI：Foreign loan options are also available.
Things to note
Interest rates vary by bank, usually between 1.5% and 3.5% (floating or fixed).
If you do not have Japanese residency status, the interest rate and loan ratio may be unfavorable.
It is recommended to cooperate with a real estate agent or agency that is familiar with international real estate to assist with translation and process processing.
Mainland real estate unit conversion
Conversion formula
To convert the price per square meter in RMB to the price in Taiwan dollars per square meter, you need to follow the following steps to calculate:
1. Square footage conversion
1 square meter ≈ 0.3025 ping
2. Exchange rate conversion
Assume the current exchange rate is 1 CNY = 4.5 NT$ (for reference only, please confirm the latest exchange rate).
3. Calculation steps
Convert RMB prices to New Taiwan Dollars: 100,000 RMB/square meter × 4.5 NTD/RMB = 450,000 NTD/square meter
Convert square meters to square meters: 450,000 NTD/square meter ÷ 0.3025 ping/square meter ≈ 1.4876 million NTD/square meter
in conclusion
100,000 RMB/square meter ≈1.4876 million NTD/square meter
Remark
The above conversion is for reference only, the actual price needs to be adjusted according to the latest exchange rate.
real estate investment trust
Real Estate Investment Trust (REITs) is a financial instrument that "securitizes" real estate investment. By holding beneficiary certificates, investors indirectly participate in the investment of large-scale real estate such as commercial offices, department stores, hotels, or logistics centers, and share their rental income and value-added benefits.
Operating mechanism and revenue sources
The core logic of REITs is to convert long-term stable rental income into dividends and distribute them to investors:
Asset composition:Mainly include office buildings, shopping malls, medical buildings or warehouse facilities.
Source of income:The vast majority (usually more than 90%) of the rental income, after deducting management costs, must by law be distributed to the holders.
Liquidity:Traded on a centralized market like stocks, they can be liquidated much faster than physical real estate.
Tax Advantages of Taiwan REITs
Investing in local REITs in Taiwan enjoys special tax benefits, which is an important reason to attract long-term investors:
Separate taxation:Dividend income is subject to a separate tax of 6% and is not included in the calculation of personal comprehensive income tax, which has tax saving benefits for high-tax rate groups.
Exemption from second-generation health insurance:Currently, REITs income distribution does not require the payment of second-generation health insurance supplementary premiums.
Suspension of securities transaction tax:The collection of certificates and taxes on the purchase and sale of benefit certificates is currently suspended in accordance with the law.
Comparison with direct investment in real estate
Compare items
Real Estate Investment Trusts (REITs)
Buy physical property directly
Threshold capital
Very low, you can participate in small amounts.
Extremely high, requires self-prepared funds and loans.
Liquidity
High and can be liquidated in the market at any time.
Low, the trading period usually lasts several months.
administrative costs
It is managed by a professional agency, so investors don’t have to worry about it.
You need to handle leasing, repairs and taxes by yourself.
spread risk
Interests in several buildings can be held at the same time.
Focus on a single object.
Risk considerations
Although it has the characteristics of stable income, investors still need to pay attention to the following risks:
Interest rate risk:When interest rates rise, REITs become relatively less attractive and borrowing costs may increase.
Vacancy rate risk:If the proportion of the underlying properties (such as commercial offices) rented out decreases, it will directly reduce the dividends that can be distributed.
Market supply and demand:The rise of e-commerce may impact physical mall REITs, while remote working may impact commercial REITs.
Currently, the main REITs in the Taiwan market include Cathay One (01002T), Fubon One (01001T), etc. If pursuing a wider range of options, many investors will also allocate to REITs in the U.S. market to diversify industry risks.
Tokenization of real estate physical assets
RWA is the abbreviation of Real World Assets. Real estate RWA refers to converting claims or ownership of physical properties into digital tokens (Tokens) through blockchain technology. This allows investors to buy fractional shares of real estate much like buying and selling cryptocurrencies.
core operating mechanism
The process of real estate RWA usually involves the legal confirmation and digitization of assets:
Asset fragmentation:Divide a commercial office or residence worth hundreds of millions of yuan into tens of thousands of digital tokens to lower the investment threshold.
On-chain contract:Automatically execute rent allocation, voting rights or transfer procedures through smart contracts.
Legal structure:A special purpose vehicle (SPV) is usually established to hold real estate, and the equity or debt of the SPV is linked to the token to ensure legal validity.
Advantages of Real Estate RWA
Extremely low investment threshold:Investors can participate in high-threshold commercial investments with an amount of US$100 or less.
24/7 liquidity:Unlike traditional real estate transactions, which take months, RWA tokens can be traded on the secondary market 24 hours a day.
Transparency and automation:All transaction records and rent distribution are recorded in the blockchain, which cannot be tampered with and reduces manual operation costs.
Cross-border investment:Global investors can easily participate in the real estate markets of different countries through the decentralized finance (DeFi) platform.
High, it can be directly used as DeFi pledge or lending collateral.
Low, limited by traditional banking system and securities regulations.
management style
Favor decentralized governance (DAO) or code automation.
Led by a professional management body (Trustee).
Distribution mechanism
Rent can be distributed instantly and accurately through smart contracts.
It is settled and distributed by investment credit companies on a quarterly or annual basis.
Development challenges and risks
Despite its great potential, RWA still faces the following practical difficulties:
Regulatory Compliance:Countries have different definitions of the security attributes of tokenized assets, which must comply with securities trading regulations (such as KYC/AML specifications).
Oracle data accuracy:The value assessment of physical real estate relies on a third party (oracle) to transmit off-chain data back to the chain, and there is a risk of information gaps.
Legal recourse:When a dispute occurs, the order of compensation for digital token holders in the substantive legal system still needs to be improved by regulations.
Currently, world-renowned real estate RWA platforms include RealT, Propy, etc. However, in Taiwan, related applications are still restricted by financial regulations and are mostly in the stage of sandbox experiments or specific private equity cases.
rent a house
In addition to searching for properties through traditional platforms when renting houses in Taiwan, in recent years there have been major changes in regulations regarding tenants’ rights, rent subsidies and electricity billing. The following is the latest rental guide for 2026:
Mainstream rental platforms and search channels
Comprehensive platform:591 House Transaction Network, Lewu.com, Haofang.com. This type of platform has the most complete objects, but you need to pay attention to the timeliness of information update.
Social media:Facebook rental groups (such as Taipei rental, Taichung rental, etc.). The advantage is that you can communicate directly with the landlord or current tenant, but the risk of fraud is higher.
Symbiotic apartments and brand rentals:Home Sweet Home, 9floor, Alife. Suitable for people with higher budgets who value quality of life and social interaction.
Government platform:The Home Office’s social housing tenancy management scheme is suitable for tenants who meet certain status conditions and enjoy rent discounts.
2026 New Rent Subsidy System
The government’s 30 billion yuan central government rental subsidy project has been extended to 2026. The key rules are as follows:
Legal residential restrictions:Starting from January 1, 2026, the house rented by new applicants must be a legal residence (with building registration, tax registration as a residence, etc.). Attic additions or illegal construction will be excluded from the scope of subsidies.
Application threshold:You can apply if you are 18 years of age or older. You do not need the landlord’s consent, nor do you need to provide the landlord’s ID number.
Income restrictions:The average monthly income of each family member must be less than 3 times the minimum living expense in the place where the rental house is rented (for example, about NT$61,000 in Taipei City).
Added objects:Single young people (1.2 times), newlywed families (1.3 times), and families with children (from 1.4 times) all have increased amounts.
Lease contract legal points
Normative projects
Legal protection content
Tenancy protection
The new version of the leasing bill promotes the priority right to renew leases and aims to protect tenants with a stable lease period of at least 3 years.
Electricity bill cap
The electricity bill charged by the landlord must not exceed the "average electricity price per kilowatt hour for the current period" on Taipower's bill, and it is strictly prohibited to earn the electricity price difference.
Deposit limit
The deposit cannot exceed a maximum of 2 months' total rent.
Prohibited matters
The contract must not stipulate that "it is prohibited to move into the household registration", "it is prohibited to apply for rent subsidies" or "it is prohibited to file taxes". Otherwise, the clause will be invalid.
Essential checklist before signing a contract
Identity check:The landlord is required to show his ID card and house ownership certificate (or copy) to confirm that the signatory is the owner.
Equipment point delivery:Take photos and documents of furniture and home appliances, and test whether the functions are normal one by one. Attach the list to the back of the contract.
Repair Responsibilities:Unless otherwise agreed, in principle, the landlord is responsible for repairing structural and fixed equipment (such as water leaks and water heaters).
Tax reminder:If the landlord directly notes the rent received and signs it on the lease, he must affix a stamp tax of 4%, otherwise he will face a suspended fine. It is recommended to keep records via bank transfer.
If your current rental object is a specific type of property (such as a shared apartment or social housing), it is recommended to confirm its tax status first, so as not to affect your subsequent application qualifications for rental subsidies.
Long term lease specifications
Long-term rentals (more than 30 days) in Taiwan are mainly regulated by the Civil Code and the Rental Housing Market Development and Management Regulations (referred to as the Rental Law). Starting from 2026, the government will implement a number of new systems for tenant protection and market transparency.
Legal system and applicable objects
Applicable definitions:Buildings used for residential purposes and with a lease period of more than 30 days.
Core regulations:
"Civil Law": regulates the general lease-creditor-debt relationship.
"Regulations on the Development and Management of the Rental Housing Market": a special law for residential leasing, which is superior to the civil law.
Article 100 of the Land Law: Conditions restricting the lessor from taking back the house.
Three key points of the latest rental policy in 2026
In line with the government's "Rental Housing Improvement" policy, the core regulations to be implemented after 2026 are as follows:
Three-year lease guarantee:Grant tenants the "right of first refusal" to renew the lease, ensuring that the total term of the contract and renewal is at least 3 years. Unless the landlord takes back the owner-occupied property or the tenant breaches the contract, the landlord may not refuse to renew the lease without reason.
The upper limit of contract renewal increase:If the landlord wants to adjust the rent for renewal, he must give six months' notice, and the increase must not exceed the annual increase rate of the "Rent Index of the Executive Yuan Accounting Office" (currently around 2%).
Rent transparency obligations:The competent authority regularly publishes the "median rent per square meter" in each area based on the age and type of housing, and landlords are not allowed to hide actual transaction information.
Deposits, electricity bills and contract mandatory provisions
project
Regulatory restrictions
Deposit limit
The maximum amount cannot exceed the total amount of 2 months' rent.
Electricity billing
Earning the difference in electricity bills is strictly prohibited. The electricity bill per kilowatt hour shall not exceed the "average electricity price per kilowatt hour for the current period" in Taipower's bill.
Four major prohibitions
It is not allowed to stipulate that: it is prohibited to move into a household registration, it is prohibited to apply for rent subsidies, it is prohibited to declare rental expenses as deductions for income tax, and the tenant shall bear the increase in taxes arising from renting the house.
New threshold for rent subsidy in 2026
Starting from January 2026, “legal residence” restrictions will be added to long-term rental subsidy applications:
Exclude illegal construction:The property to be rented by the new applicant household must be registered as a building or tax registered as a residence. Attic additions, illegal partitions, and unregistered buildings will not be able to pass the subsidy review.
Incentives for landlords to report:Provide tax incentives for public lessors (monthly tax exemption of RMB 15,000) to encourage landlords to cooperate with tenants in applying for subsidies.
Comparison of long-term and short-term rental management mechanisms
Compare items
Short term rental (less than 30 days)
Long-term rental (more than 30 days)
main laws
Tourism development regulations
Rental housing law, civil law
business status
A hotel or B&B registration certificate is required
General natural person or escrow or charterer
lease deed
Usually an accommodation service contract
Residential lease standardized contract
tax nature
Business activities are subject to business tax
Property rental income
In summary, long-term rental regulations are developing towards "contract standardization" and "lease term stabilization". If you are a landlord, it is recommended to use the latest version of the Ministry of Interior’s standardized contract; if you are a tenant, the new system in 2026 will provide stronger contract renewal protection and price transparency.
Bed and Breakfast for Rent
Operating a B&B in Taiwan must comply with the Tourism Development Regulations and B&B Management Measures. Legal operations not only involve the use of buildings, but are also closely related to zoning.
Legal business practices
Core definition: refers to an accommodation place that utilizes spare rooms in self-occupied residences, operates as a family side business, and combines local culture and landscape.
Limit on the number of rooms: Generally, the maximum number of guest rooms in a B&B is 8, and the total floor area must be less than 240 square meters.
Relaxation of special cases: The upper limit can be relaxed to 15 rooms and an area of 400 square meters in aboriginal areas, remote areas, outlying islands or leisure farms approved by the Agriculture Committee.
Location restrictions: Mainly open to non-urban land, specific scenic areas, tourist areas, etc. Generally, collective housing buildings in cities cannot legally apply to be B&Bs.
Mainstream listing platforms and URLs
Airbnb Taiwan:https://www.airbnb.com.tw/(The world’s largest short-term rental platform, suitable for attracting tourists from all over the world)
AsiaYo：https://asiayo.com/(Taiwan’s largest hotel booking platform, deeply involved in the Asian market)
Booking.com：https://www.booking.com/(With a powerful back-end management system, suitable for stable order collection)
Taiwan Travel and Accommodation Network:https://taiwanstay.net.tw/(Official legal directory inquiry and information release platform)
Application process and licenses
Operators who operate without a registration certificate will face a fine of NT$100,000 to NT$1 million. The procedures are as follows:
Confirm whether the land use zoning complies with the "areas where B&Bs can be applied for" announced by the local county and city government.
Submit application form, proof of land/building consent, usage license, and copy of liability insurance contract.
Pass a fire safety inspection to ensure fire extinguishers, fire alarms and emergency lighting are installed.
Only after receiving the B&B registration certificate and special signage can you start advertising and doing business.
tax regulations
tax category
Course collection standards
house tax
Those that meet the scale and are self-operated by the owner can be levied at the household tax rate; if the scale exceeds the standard or is not self-operated, the business tax rate will be applied.
business tax
Monthly sales of less than RMB 80,000 are exempt; sales from RMB 80,000 to RMB 200,000 are taxed at 1%; sales exceeding RMB 200,000 require an invoice to be taxed at 5%.
income tax
B&B income is incorporated into the personal comprehensive income tax declaration after deducting costs. The cost rate usually refers to the standards announced by the Ministry of Finance for that year.
Since various county and city governments (such as Yilan, Pingtung, and Nantou) have different regulations on the management autonomy of B&Bs, it is recommended to confirm the latest announcement information with the tourism bureau of the county or city before choosing a location.
Listing on Airbnb
Listing real estate on Airbnb and converting it into short-term rental income is a common way to increase real estate cash flow. However, when operating in Taiwan, special attention needs to be paid to regulatory restrictions and operational details.
Legality confirmation and regulatory risks
Operating short-term rentals (less than 30 days) in Taiwan is strictly regulated by the Tourism Development Ordinance:
Hotel and B&B licenses:It is often difficult to obtain a B&B license for apartments or buildings in urban residential areas. If you list a hotel or B&B to provide accommodation without a legal license, you may face a fine of NT$100,000 to NT$500,000 and may be ordered to suspend business.
Apartment building management regulations:Many community management committees have revised their bylaws through residents’ meetings to prohibit residents from operating short-term rentals (such as Airbnb). It is necessary to confirm the content of the regulations before putting them on the shelves to avoid legal disputes caused by complaints from neighbors.
Preparation steps for launch
Space preparation:Make sure the infrastructure (Wi-Fi, hot water, air conditioning) is functioning properly and provide high-quality bedding and supplies to improve your rating.
Professional Photography:Airbnb is an extremely visual platform. Using professional wide-angle photography and shooting during daylight hours can significantly increase your click-through rate.
Copywriting:The title should include a landmark or feature (e.g. near MRT station, balcony with view). House rules need to be clearly stated in the description to reduce subsequent cognitive errors.
Pricing strategy and profit optimization
Pricing tools
Function description
Smart Pricing
Airbnb automatically adjusts room rates based on local demand, festivals, and inventory.
Weekend vs. Consecutive Holiday Premium
Set higher floor prices for popular periods to balance out the lower occupancy rates on weekdays.
Long stay offer
Provide discounts on weekly rent (more than 7 days) or monthly rent (more than 28 days) to attract stable tenants and reduce the frequency of cleaning.
Operational automation management
In order to reduce labor costs, mature landlords usually establish the following systems:
Self check-in:Install an electronic code lock or set up a key box to allow guests to check in smoothly at any time.
Outsourcing cleaning:Work with a professional cleaning team and pass cleaning fees on to guests.
Automatic message:Preset check-in instructions, transportation suggestions, and check-out reminders to ensure immediate and consistent communication.
In summary, although Airbnb can provide higher gross profits (about 1.5 to 2.5 times) than traditional long-term rentals, its operating costs and regulatory risks are also relatively high. For investors, it is recommended to first evaluate the reporting risks and the possibility of obtaining a legal license in the area.
Sub-leasing from second landlord
When operating a sublease business in Taiwan, the first condition is to ensure the legality of the “sublease right”. Subletting without the consent of the original landlord will result in the original lease being terminated and the sub-tenant (second tenant) being liable for compensation.
1. Necessary conditions for legal subletting
Written consent:According to the special leasing laws, subletting must obtain the "written consent" of the original landlord. In practice, it is recommended to directly add the clause "the lessor agrees to the lessee to sublet all or part of the house" in the original lease.
Show proof to sub-tenant:When signing a contract with the second tenant, the second landlord is legally obligated to proactively produce "the original landlord's written document agreeing to sublease" and "the contents of the original lease contract" to prove that the sublease is legal and the lease term has not exceeded the original contract.
The original lease period must not exceed:The sublease period of the second landlord must not exceed the remaining lease term signed between the second landlord and the big landlord.
2. Full sublease vs. partial sublease
Sublease scope
Civil Code (General Buildings)
Rental Law and Regulations (Residential)
All sublet
The landlord's consent is required, otherwise the landlord may terminate the lease.
Coercion requires written consent, otherwise it will be considered illegal.
Partial sublet
Unless expressly prohibited by the contract, subletting is possible in principle.
Written consent is still required and standardized contract specifications must be followed.
3. Differences between personal subletting and professional chartering
In the market environment of 2026, the identity of the second landlord determines the depth of applicable regulations:
Natural person second landlord:Occasionally or only subletting a single property. It should be noted that if there are "repeated operations", it may be recognized as a "charter management industry".
Charter industry (legal entity):If you operate on a large scale, you must establish a company, pay a business deposit, and be managed by a licensed "rental housing manager." When signing a contract, you must use the Ministry of the Interior's version of the "Residential Sublet Standardized Contract."
4. Business risks and maintenance responsibilities
Joint and several compensation:If the second tenant damages the house or violates the rules of the apartment building, the major landlord has the right to directly require the second landlord to be responsible for repairs or compensation. The second landlord cannot avoid liability to the larger landlord on the grounds that "the second tenant caused the damage."
Rent difference and tax:The difference in rent earned by the second landlord is considered “property rental income” and should be included in the annual comprehensive personal income tax return. If it is a chartered management business, it shall be reported in accordance with the Business Tax Law.
Deposit limit:The maximum deposit chargeable to a second tenant is also protected by law and cannot exceed 2 months’ total rent.
5. Challenges to second landlords under the new system in 2026
As the government promotes the improvement of rental housing, second landlords are facing the following trends:
Rent subsidy and household registration:Starting from 2026, the government will strengthen the identification of legal residences. If the second landlord sublets an illegal attic addition, the second tenant will not be able to apply for rent subsidies, which will reduce the market competitiveness of the property.
Transparency of electricity bills:The electricity fee charged by the second landlord to the second tenant is strictly prohibited from being higher than the current average electricity price per kilowatt hour in Taipower's bill. If the second landlord earns the difference through high electricity bills, he will face heavy fines if reported.
It is recommended that before you start the second-tenant business, you must first obtain a "sublet authorization letter" from the big landlord and confirm whether the property has legal tax registration or building registration. This will directly affect the quality of your second-tenants and the stability of your business.
