TAIPEI (TVBS News) — Global inflation, stagnant wages, and higher living costs present challenges to Taiwan's rental housing market, leading to widespread grievances among renters.
With limited wage growth and a higher cost of living, tenants are increasingly strained to make ends meet. For instance, the monthly rent for one of the co-living spaces in Taiwan has been raised three times in seven years, ranging between NT＄12,000 to NT＄20,000.
"Rent in Taiwan is experiencing an upward trend, as reflected in an official rental index," Tseng Ching-te, the project manager of Sinyi Realty Business Planning Department, noted.
"Inflation has additionally contributed to higher property prices over the past two years, leading to accelerated rent growth."
The most recent data from the Directorate-General of Budget, Accounting, and Statistics reveals that the rent index reached a record high of 103.66 in June. This increase can be attributed to soaring housing prices and global inflation, which have increased overall rental market prices.
Surprisingly, Taipei's rental pain index stands at 12.87, ranking second to last among 20 cities worldwide. This suggests a comparatively lighter rent burden. Mumbai claims the top spot on the list, followed by Beijing, Shanghai, London, and New York. The average rent for these cities exceeds NT＄5,000 per square foot.
Despite the government's efforts to introduce measures to curb the housing crisis, He Shih-chang, chief executive officer of a real estate think tank, stressed, "Taipei's rental prices have not only increased over the long run, but housing prices have risen as well."
He explained that Taipei's rental fee does not appear as high compared to other countries, "mainly due to the limited presence of foreign workers in the city and the absence of rent subsidization practices."
"As a result, Taipei's rents have remained relatively lower over the years," He said.
Even though Taipei's rental pain index is lower than that of other major cities worldwide, renters will face increasing difficulty in finding affordable living spaces if wages fail to keep up with rising living expenses and diminishing purchasing power.