IDEAS home Printed from https://ideas.repec.org/a/ire/issued/v21n032018p397-418.html
   My bibliography  Save this article

Dilemma of Housing Demand in Taiwan

Author

Listed:
  • Chin-Oh Chang

    (National Chengchi University)

  • Shu-Mei Chen

    (Kun Shan University)

Abstract

This paper discusses the contradicting phenomenon of housing demand in Taiwan. First, an introduction is given on the three primary characteristics of the housing market in Taiwan, which are a high housing vacancy rate, high housing prices and high home ownership. Secondly, we explore the motivation and preferences behind housing purchase. Since the housing price-income ratio continues to increase, unaffordable housing prices cause households to suffer from poor quality of life. The issues of housing justice are highlighted. Recently, the demographics and social values have rapidly changed. Therefore, even if homebuyers face unaffordable housing prices, they still prefer to buy housing instead of renting due to the traditional cultural belief that ¡§to have land is to have wealth¡¨. This has resulted in the phenomenon with high home ownership rate yet high housing prices. On the other hand, the low holding cost of housing and imbalance in urban and rural development perpetuate the high housing vacancy rate in the housing market. This results in an unhealthy housing market and misallocation of resources. Finally, recommendations for related government policy making are made based on the findings.

Suggested Citation

  • Chin-Oh Chang & Shu-Mei Chen, 2018. "Dilemma of Housing Demand in Taiwan," International Real Estate Review, Global Social Science Institute, vol. 21(3), pages 397-418.
    • Handle: RePEc:ire:issued:v:21:n:03:2018:p:397-418
    as

    Download full text from publisher

    File URL: https://www.gssinst.org/irer/wp-content/uploads/2020/10/v21n3-dilemma-of-housing-demand-in-taiwan.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hsiao-Jung Teng & Chin-Oh Chang & Ming-Chi Chen, 2017. "Housing bubble contagion from city centre to suburbs," Urban Studies, Urban Studies Journal Limited, vol. 54(6), pages 1463-1481, May.
    2. Chin-Oh Chang & Shu-Mei Chen & Tsur Somerville, 2003. "Economic and Social Status in Household Decision-making: Evidence Relating to Extended Family Mobility," Urban Studies, Urban Studies Journal Limited, vol. 40(4), pages 733-746, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yi-Lung Chen & Dian-Jeng Li & Ying-Yeh Chen & Cheng-Fang Yen, 2024. "The impact of housing-price-related indices on suicide rates in Taiwan," International Journal of Social Psychiatry, , vol. 70(1), pages 40-47, February.
    2. Klaas Kresse & Erwin van der Krabben, 2021. "Housing Supply Limitations, Land Readjustment and the Ecological Performance of the Urban Landscape," Sustainability, MDPI, vol. 13(17), pages 1-24, August.
    3. Cheng-Hong Yang & Borcy Lee & Yu-Da Lin, 2022. "Effect of Money Supply, Population, and Rent on Real Estate: A Clustering Analysis in Taiwan," Mathematics, MDPI, vol. 10(7), pages 1-17, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:ire:issued:v:21:n:03:2018:p:389-418 is not listed on IDEAS
    2. Kun-Kuang Wu & Chun-Chang Lee & Chih-Min Liang & Wen-Chih Yeh & Zheng Yu, 2020. "Exploring the Factors Influencing Kaohsiung Residents’ Intentions to Choose Age-Friendly Housing," IJERPH, MDPI, vol. 17(21), pages 1-21, October.
    3. Hu, Yang & Oxley, Les, 2018. "Bubble contagion: Evidence from Japan’s asset price bubble of the 1980-90s," Journal of the Japanese and International Economies, Elsevier, vol. 50(C), pages 89-95.
    4. Na Ta & Zhilin Liu & Yanwei Chai, 2019. "Help whom and help what? Intergenerational co-residence and the gender differences in time use among dual-earner households in Beijing, China," Urban Studies, Urban Studies Journal Limited, vol. 56(10), pages 2058-2074, August.
    5. Orhan SANLI & Osman PEKER, 2023. "Effect of Inflation, Exchange Rate, Interest Rates and Income on House Sales: a Case of Turkiye," Journal of Economic Policy Researches, Istanbul University, Faculty of Economics, vol. 10(1), pages 37-60, January.

    More about this item

    Keywords

    Housing Demand; Taiwan; Housing Price; Housing Vacancy Rate; Home Ownership Rate;
    All these keywords.

    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ire:issued:v:21:n:03:2018:p:397-418. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: IRER Graduate Assistant/Webmaster (email available below). General contact details of provider: https://www.gssinst.org/gssinst/index.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.