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?