Hongkongers snap up property in Taiwan as self-ruled island becomes a popular relocation option
- Hong Kong residents accounted for 41.2 per cent of property acquired by foreigners in 2019, according to Savills data
- Some 27,844 Hongkongers were eligible for residency in Taiwan from 2019 to 2021, more than double the 12,220 in the previous three years
Hong Kong residents accounted for at least a third of homes bought by foreigners in 2019 and 2020, according to the latest available data.
Official data showed that 27,844 Hongkongers were approved by Taipei to gain residency from 2019 to 2021, more than double the 12,220 in the immediately preceding three years from 2016 to 2018. Those who were permitted permanent residency has also risen since 2016.
“Hong Kong residents have always considered Taiwan a popular place to relocate to because of geographical proximity and cultural similarity,” said Sing Tien Foo, professor and director of Institute of Real Estate and Urban Studies at the National University of Singapore. “Hong Kong residents may still find housing prices in Taiwan, especially in second-tier and southern Taiwanese cities, within their affordable range compared to the housing market in Hong Kong.”
Just like the UK, Taiwan is perceived to be friendly and sympathetic to Hongkongers who are looking to leave Hong Kong following Beijing’s imposition of a sweeping national security law in 2020.
“[According to] government statistics, we are seeing a significant increase in Hongkongers moving to Taiwan especially in the past three years,” said Andrew Liu, managing director of Colliers Taiwan.
In 2019, following the social unrest, Hong Kong residents bought a total of 158,614 square metres of property in Taiwan, accounting for 41.2 per cent of the total real estate acquired by foreigners, according to data from Savills. It was more than triple the 52,607 square metres that Hongkongers bought a year earlier.
In 2020, owing to the tight border restrictions imposed by Taipei, which suspended the approval of new visa applications following the outbreak of the coronavirus, Hongkongers were only able to acquire 60,913 square metres of property in Taiwan, but still accounted for more than a third of the total property bought by foreigners.
While official data for 2021 is not yet available, home prices rose 2.15 per cent in the third quarter from the previous quarter and 7.43 per cent from the same period in 2020.
The rising home prices prompted Taipei to amend the capital gains tax last July. Both residents and non-resident individuals and companies are now required to hold their property for longer before they can sell their property to be eligible for a lower tax rate, suggesting a robust property market.
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Besides the capital Taipei, Hongkongers were looking at acquiring property in the northern cities of New Taipei and Taichung and the southwestern industrial city of Kaohsiung.
With more Hong Kong residents relocating to Taiwan, the already high housing prices, especially in Taipei and New Taipei will come under pressure, said National University of Singapore’s Sing.
Hongkongers reportedly bought more than 10 per cent of the 147 luxury units in a 163-metre skyscraper designed by prominent American architect Richard Meier, according to Erin Ting, head of research department at Savills Taiwan.
“The supply of residences in Taiwan is sufficient and there are around 100,000 units released on to the market ever year,” Ting said.
Border controls, fast growing house prices and higher capital gains tax could make buyers defer their decisions, she added.
