I do wonder if this will do anything to help with property costs. Wouldn’t it just make people hold on to their property even longer, causing an even greater “shortage” (by which I mean of homes actually on the market, as there are already way more homes than families to fill them)? Most people I know “investing” in real estate buy a new overpriced home every 2-3 years. But they never sell the old ones or rent them out. They just collect them.
I don’t think this tax addresses the actual issue, which is property hoarding, not speculation.
What happens after five years?
101 posts were split to a new topic: General Taiwan vs. everywhere else real estate discussion 2021 edition
Apparently the law is targeting house flipping / scalping (note it now includes presale homes). There is trend in Taiwan where when a new apartment block goes on sale, speculators will line up overnight, buy up all the prime apartments, then immidiately sell them for a quick 10-20% profit.
This instant price increase means that they often end up being bought by other spectators and professional landlords, pricing out new home buyers. It’s also said that alot of these overnight lines are fake (to fein interest), and the apartments are presold to friends/family of the building company for a quick flip.
Bridging down the price of new houses should causes prices to even out eventually.
Curious how this is going to work. People will have to pay tax on houses they sold 5 years ago?