Ａstudy of the Influential Factors in the Newly Build Housing Prices in Taiwan
Date Issued
2015
Date
2015
Author(s)
Tsai, Ya-Chi
Abstract
The purpose of this paper is to explore the connection between property prices and interest rates, and examine whether Taiwan’s low interest rates cause property prices to rise, however due to Taiwan’s property information privacy, this research is restricted to Taiwan’s new property prices statistics, by analyzing property prices, interest rates and rental prices during local market progression, with the use of multivariate regression analysis, we can further discuss how to restore reasonable growth rates in Taiwan’s property market. According to statistical analysis, we can find out changing in loan rates would affect the prices of property. When bank’s interest rate remains low for a very long term, it would mislead investors to continue investing on property which cause higher property prices. Statistic shows rental rates has no significant relationship with Taiwan’s unreasonable soaring property prices. This shows that Taiwan’s property market has a tendency to collapse. With Taiwan’s GDP and currency rates show positive relationship with property prices but for other analysis regarding consumer price index and property prices are relatively minor.
Subjects
property prices
rates
GDP
M1b
Ratio of house price to income
Type
thesis