http://www.brookings.edu/research/opinions/2015/07/15-taiwan-rising-housing-prices-chen
For those of us with limited time (although I actually did through most of it):
[quote]Conclusion
Although new housing policies are facing many political and financial challenges, social discontent keeps pushing the government and policymakers to act. Housing inequality has become a political issue that mayors in major cities and the president have to enact policies to improve the situation. Some people in Taiwan think the housing market has been inflating and the problem will resolve naturally once the bubble busts. Others worry that Taiwan is following Japan’s path, with its “lost decades” of economic stagnation. It is questionable whether or when the bubble will burst, because the speculative investments come from excess domestic capital, savings, and a continuing influx of foreign capital. Tax reform will cool down the speculation, but prices will fall slowly at best. No matter how high or low housing prices get, there will always be a demand for low-income rental housing, which thus far has been neglected by housing policies. The current 0.08 percent share provided by social rental housing is far too low to take care of social needs.[34] [/quote]
1: Nice to know think tanks and politicians are finally catching up with regular people are thinking, just five years late.
2: Watch Tsai Ing-wen get elected and housing prices slide. Won’t fix the problem but it should cause a bit of a correction, unless she wins by a landslide indicating people are confident in her.
3: Thanks for the summary.