Analysts see rate hikes dampening sales of propertyBy Crystal Hsu / Staff reporterThe central bank’s second interest rate hike would further slow this year’s property transactions, which have plunged by double percentage points in the first five months amid rising economic uncertainty, property analysts said yesterday. Historical data show interest rate hikes and credit controls are effective in dampening purchasing interest, explaining why buyers these days hesitate to make offers, the broker said. The rate hike, while mild and widely expected, would fuel property revaluation and raise investment hurdles, while sellers refuse to budge, making it difficult to close deals, Colliers Taiwan said. CBRE Taiwan (世邦魏理仕), another property broker, shared similar observations, saying that land deals this year would remain above long-term averages, albeit lagging behind the level seen last year. Evertrust Rehouse Co (永慶房屋) said people would feel the pinch when cumulative interest rate hikes reach 0.75 percentage points, from 0.375 percentage points at present.
