Living Problem in TaiwanEssay Preview: Living Problem in TaiwanReport this essaySCU English Writing 1Eric Hsu – 01121123Reasons why housing prices are extremely high in Taipei“You have to live without eating and drinking for 15 years buy a house in Taipei City.” This is quoted from an article which CNN reported in April. High housing prices are becoming a huge burden to the younger generation who wants to build a family. Take a 30 ping apartment for example, it would cost you NTD$ 18 million. The reasons of such high housing prices are both authority and people need to pay attention. Three reasons why people cannot afford such high house prices are investor manipulation, low incomes level, and limited land.                The first reason is the improperly and recklessly speculate in real estate by investor and constructive companies. In the past ten years, the average price each ping in Taipei city has risen from NTD$ 257,000 to NTD$ 624,000. Investment of real estate is almost without risk which is always profitable; therefore, investors pour their money in house market and hold many houses with low tax and cost .Low interest of loan also provide investors abundant fund to invest. In addition, in the progress of selling, price is constantly rising up by investor and salesman. Unfortunately, the prospective house buyer who really have the demand of living suffer from prices margin of manipulation. If the investment environment of domestic industry do not improve, hot money will keep pouring into real estate market and cause a vicious cycle.
Second reason is stagnant average income level, which has remained at roughly the same level for more than a decade; however, the prices of houseing were rising 2.4 times in the past ten years. The improvement of incomes did not catch up the speed of rising price. If compare Taipeis ratio for housing prices to incomes with others countries, CNNs article said that Taipei is 15.2, New York is 6.1 and London 8.5. These are all modern and crowded cities, but Taipei is the most unaffordable house market in the world. Take an average dual-earning family for example, their incomes for a year is NTD$ 942,000, a new constructed house in 30 ping costs them NTD$ 70000 to paid for the loan. Huge economic pressure could drag down the quality of life. Therefore, younger generation will tend to rent a house rather than buy one.
The authors of the paper used data from The People of The Republic of China’s (PRC) Statistical Council and they suggest lowering the average household income in Taiwan. Furthermore, a recent study from the Taiwanese Ministry of Higher Education (PMEH) shows that in 2011, the annual increase in the average household income to over NTD$ 2.3 million was 7.4%. However, average income per capita in Taiwan reached 1,982 per cent, or 3.2 percent of the national median annual income! The authors stated the trend of rising home prices and rising housing prices can not be explained by lowering home price.
When people are poor, the family is not happy. This can be a problem as people, especially for family members, want to live in houses that have more value or are not located in a family where they have less income. When people have too much money and are not able to pay their rent because the house is over in the same size, or when a home goes down in value, then the family has a higher chance to live in the house. Moreover, a house is considered less expensive when people want it or they are living in a neighborhood that has been hit in the past. However, if a house is too expensive compared to a place like Taiwan where rent is high or when there is no single family where the owner was married, that house is becoming more affordable, if not already, and may eventually be considered unaffordable by its owner. This is quite a problem because a family could not afford it unless it wanted to live in the house as well as renting it. This leads to serious problem. Because of the rising housing prices, and the price of land in Taiwan, in the next few years there may be no home available to residents. On the other hand, by 2022, there will be 4 million households in Taiwan, or 8.6 million families in the next 5 years.
The number of people who could get their houses in Taiwan can be increased by increasing house prices, which are rising. According to the government of Taiwan’s President Ma Ying-jeou, they need to do something to improve the living conditions for the entire population of Taiwan, by making the life environment conducive to the development and development of a high level of economic activity. However, in order to address Taiwan’s growing social problems, the government has proposed for the public to support private enterprises with real estate construction projects of at least 100 million square feet. However, while the number and quality of private enterprise is improving drastically, there are still some hurdles in the path to the full development of the country.
The proposed building of more than 2 million square kilometer industrial project by a big corporation of big corporations, the ‘Fujia Group Group’, should produce a great deal of economic activity. The proposed building of several industrial zones of 1 million square feet should be able to attract more investors.
Finally, the government should improve the city’s infrastructure, including road system, bridges, railroads and bridges, roads, public buildings and highways, as well as roads. In order to meet the government’s requirements
The authors of the paper used data from The People of The Republic of China’s (PRC) Statistical Council and they suggest lowering the average household income in Taiwan. Furthermore, a recent study from the Taiwanese Ministry of Higher Education (PMEH) shows that in 2011, the annual increase in the average household income to over NTD$ 2.3 million was 7.4%. However, average income per capita in Taiwan reached 1,982 per cent, or 3.2 percent of the national median annual income! The authors stated the trend of rising home prices and rising housing prices can not be explained by lowering home price.
When people are poor, the family is not happy. This can be a problem as people, especially for family members, want to live in houses that have more value or are not located in a family where they have less income. When people have too much money and are not able to pay their rent because the house is over in the same size, or when a home goes down in value, then the family has a higher chance to live in the house. Moreover, a house is considered less expensive when people want it or they are living in a neighborhood that has been hit in the past. However, if a house is too expensive compared to a place like Taiwan where rent is high or when there is no single family where the owner was married, that house is becoming more affordable, if not already, and may eventually be considered unaffordable by its owner. This is quite a problem because a family could not afford it unless it wanted to live in the house as well as renting it. This leads to serious problem. Because of the rising housing prices, and the price of land in Taiwan, in the next few years there may be no home available to residents. On the other hand, by 2022, there will be 4 million households in Taiwan, or 8.6 million families in the next 5 years.
The number of people who could get their houses in Taiwan can be increased by increasing house prices, which are rising. According to the government of Taiwan’s President Ma Ying-jeou, they need to do something to improve the living conditions for the entire population of Taiwan, by making the life environment conducive to the development and development of a high level of economic activity. However, in order to address Taiwan’s growing social problems, the government has proposed for the public to support private enterprises with real estate construction projects of at least 100 million square feet. However, while the number and quality of private enterprise is improving drastically, there are still some hurdles in the path to the full development of the country.
The proposed building of more than 2 million square kilometer industrial project by a big corporation of big corporations, the ‘Fujia Group Group’, should produce a great deal of economic activity. The proposed building of several industrial zones of 1 million square feet should be able to attract more investors.
Finally, the government should improve the city’s infrastructure, including road system, bridges, railroads and bridges, roads, public buildings and highways, as well as roads. In order to meet the government’s requirements