Residential property transactions across Taiwan’s six special municipalities weakened sharply in February, as a nine day Lunar New Year break curtailed business days and softened buyer activity, Taipei Times reports.

The slowdown highlights the property market’s sensitivity to seasonal factors and policy tightening, at a time when Taiwan’s authorities are maintaining stricter lending rules to manage financial risks and curb speculation.

With the extended holiday taking place in February 2026, the number of trading days was reduced. In the run up to the festivities, many families prioritised year end purchases over viewing homes, which further dampened demand.

On a month on month basis, deals in Taipei declined 27.3%. New Taipei City recorded a 38.8% fall. Transactions in Taoyuan and Taichung dropped 45.2% and 46.6% respectively. The steepest contractions were seen in Tainan and Kaohsiung, where volumes sank 47.8% and 47%.

Chen said the impact was not solely seasonal. Ongoing credit restrictions imposed by the central bank continued to restrain sentiment, limiting purchasing momentum and keeping activity relatively muted. Compared with February 2025, overall transactions across the six municipalities were down 32.8%.

Taipei registered a 16.4% year on year decrease. New Taipei City saw volumes slide 31%, while Taoyuan fell 36.5%. Taichung posted a 41.4% contraction and Kaohsiung declined 40.2%. Tainan recorded a 15.3% drop from a year earlier.

Chen attributed part of the annual decline to differences in the holiday calendar. In the previous year, most Lunar New Year holidays occurred in January, leaving February with more working days for property transfers and land office registrations.

That timing, coupled with a rebound in transactions following the holiday period last year, resulted in a higher comparison base. Chen added that many prospective buyers remained in holiday mode this year, travelling overseas and delaying property searches, which weighed heavily on February’s figures.

Looking ahead, Chen said market conditions are likely to improve gradually as seasonal distortions fade and buyers adjust to tighter borrowing requirements.