You need to spend nothing for nine years to afford a Taiwanese house

0

Find out where you can still afford homes in the island

Taipei City. Richie Chan/Shutterstock

Taiwan’s home price-to-income ratio in the third quarter of 2016 has shattered records, the Construction and Planning Agency of the Ministry of the Interior reported Monday.

Homes in the island are now priced 9.35 times the average income a Taiwanese earns in a year. At that ratio, prospective buyers would have to spend nothing of their income for more than 9 years to acquire a 30-ping house. This includes food and other basic necessities.

The price-to-income ratio in the island in Q3 2016 was 0.37 times that of the second quarter, 0.82 times that of the third quarter of 2015.

Greater Taipei presented an even direr picture of housing affordability. Taipei alone saw a price-to-income multiple of a staggering 15.47, while New Taipei showed 12.7.

More: More than 860,000 Taiwan homes are now empty

Only five Taiwanese and cities have properties that are five to seven times the average household income. Yulin County, Pingtung County, Chiayi City, Chiayi County, and Keelung City were classified as having “reasonable” home values.

Eleven other counties and cities, including Taichung City, Kaohsiung City, Taoyuan City, and Tainan City, were categorized as having a “slightly low” degree of housing affordability.

Meanwhile, the national mortgage burden rate in Q3 last year jumped 38.94 percent. The rate, a measure of the portion of the monthly salary used to repay a mortgage, rose 1.35 percentage points that quarter or a 2.4 percentage point increase from Q2 2016.

Read next: Architect Annabelle Selldorf on her first venture in Taiwan