Taiwan's unhappy property owners
| Last Updated: Jul. 31, 2018 | |||||
| TAIPEI - Whole floor homes | PRICE/SQ.M. (US$) | YIELD (p.a.) | PRICE/SQ.FT. (US$) | ||
| TO BUY | MONTHLY RENT | TO BUY | MONTHLY RENT | ||
| Beitou | 5,433 | 9.68 | 2.14% | 505 | 0.90 |
| Da´an | 10,571 | 14.52 | 1.65% | 982 | 1.35 |
| Datong | 6,421 | 11.49 | 2.15% | 597 | 1.07 |
| Nangang | 6,323 | 10.59 | 2.01% | 587 | 0.98 |
| Neihu | 6,421 | 10.28 | 1.92% | 597 | 0.96 |
| Shilin | 7,903 | 9.98 | 1.52% | 734 | 0.93 |
| Songshan | 8,496 | 13.01 | 1.84% | 789 | 1.21 |
| Wanhua | 6,026 | 10.89 | 2.17% | 560 | 1.01 |
| Wenshan | 5,236 | 8.17 | 1.87% | 486 | 0.76 |
| Xinyi | 9,385 | 14.52 | 1.86% | 872 | 1.35 |
| Zhongshan | 9,187 | 14.52 | 1.90% | 854 | 1.35 |
| Zhongzheng | 9,187 | 13.61 | 1.78% | 854 | 1.26 |
| Taipei flats | |||||
| Beitou | 4,347 | 13.01 | 3.59% | 404 | 1.21 |
| Da´an | 9,978 | 18.15 | 2.18% | 927 | 1.69 |
| Datong | 6,224 | 15.12 | 2.92% | 578 | 1.41 |
| Nangang | 5,927 | 14.22 | 2.88% | 551 | 1.32 |
| Neihu | 5,730 | 15.12 | 3.17% | 532 | 1.41 |
| Shilin | 7,409 | 14.52 | 2.35% | 688 | 1.35 |
| Songshan | 8,496 | 17.85 | 2.52% | 789 | 1.66 |
| Wanhua | 5,532 | 14.52 | 3.15% | 514 | 1.35 |
| Wenshan | 5,137 | 12.40 | 2.90% | 477 | 1.15 |
| Xinyi | 10,373 | 17.85 | 2.06% | 964 | 1.66 |
| Zhongshan | 6,520 | 16.33 | 3.01% | 606 | 1.52 |
| Zhongzheng | 9,780 | 16.64 | 2.04% | 909 | 1.55 |
| New Taipei whole floor homes | |||||
| Banqiao | 4,742 | 7.86 | 1.99% | 441 | 0.73 |
| Sanchong | 4,446 | 8.17 | 2.20% | 413 | 0.76 |
| Yonghe | 5,137 | 7.86 | 1.84% | 477 | 0.73 |
| Zhonghe | 4,347 | 7.56 | 2.09% | 404 | 0.70 |
| New Taipei suites | |||||
| Banqiao | 5,631 | 12.10 | 2.58% | 523 | 1.12 |
| Sanchong | 4,742 | 11.49 | 2.91% | 441 | 1.07 |
| Yonghe | 5,829 | 11.80 | 2.43% | 541 | 1.10 |
| Zhonghe | 5,038 | 13.61 | 3.24% | 468 | 1.26 |
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All yields are gross - i.e., before taxes, repair costs, ground rents, estate agents fees, and any other costs. Net yields (what you´ll really earn) are typically around 1.5% to 2% lower. Source: 591 Definitions: Data FAQ See also: Update Schedule |
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Taipei now vies with Monaco for having the lowest yields in the world. With buying prices per square metre averaging a steller US$7,200 to US$9,200, depending on size, and rents still affordable (where else can you rent a US$1.8 million home for just US$2,200 per month?), Taipei is not a happy place for landlords.
The owner of an apartment in Taipei will be lucky to realize 2% yields, except on the very smallest apartments. Given that the Global Property Guide´s figures are for gross rental yields, i.e., do not make any allowance for vacant periods, for legal costs, administration costs, cleaning and repairs, rental taxes, property taxes, and other taxes, it is safe to say that landlords in Taiwan earn nothing on their apartments.
We believe apartments in Taipei are overvalued - and will fall in price. But we should warn readers that we can get it wrong!