Taiwan's tech boom triggers property prices surge

DW (English)

Taiwan's successful semiconductor industry is driving up property prices and putting pressure of the housing market.

Transcript

00:00Taiwan has become a global hub for the semiconductor industry,

00:04bringing immense wealth and transformation to its society.

00:08Behind this rise are thousands of engineers

00:11working in places like Hsinchu Science Park.

00:14Lester Wang is one of them.

00:18I have been in the semiconductor industry for nearly 10 years.

00:21I have worked for four companies.

00:23You may have heard of the technology industry,

00:25which is an industry with long working hours and lots of pressure.

00:29Many engineers regularly work overtime.

00:32I think it is normal to get off work at 8 or 9 p.m.

00:37The work may be demanding,

00:38but it's rewarded with an impressive paycheck.

00:41The average salary of an engineer in Hsinchu

00:44is more than two and a half times higher than the region's average.

00:47The tech boom has impacted the housing market,

00:50especially around Hsinchu Science Park.

00:56If we talk about the buyers of these new buildings,

00:58they're mostly senior engineers with annual incomes

01:01ranging from 84 to 280,000 euros.

01:08Armed with a high salary,

01:10engineers view purchasing an expensive property

01:13as the common next step.

01:15For many, shopping for a new apartment

01:17has become a weekend activity.

01:21Take off your shoes.

01:24Here's a three-bedroom, two-bathroom flat.

01:27It's what engineers mainly buy.

01:33As engineers strategize to find the best deals,

01:36real estate prices continue to climb.

01:40The housing prices have increased by more than 50% each year.

01:45The price per square meter 10 years ago was around 7,000 euros.

01:49During the pandemic, it increased to 8,500 euros.

01:53Now, one year later, it's 17,000 euros.

01:58Meanwhile, many young Taiwanese outside the tech sector

02:02watch their dream of home ownership slip further away.

02:08I'm young and just started working.

02:10I can't buy a house.

02:12I think it's pretty difficult for our generation

02:14because salary increases can't keep up with housing prices.

02:20But while Taiwan's semiconductor industry thrives,

02:24it's also facing challenges.

02:28Taiwan has faced declining birth rates,

02:31so it can't provide the talent the tech industry needs.

02:35And because product demand is not as high as it once was,

02:38there's a lot of news saying that companies

02:40are starting to lay off people, like Intel.

02:43So I think it may be a warning that, in fact,

02:45the talent of technology has reached a state of saturation.

02:50As the local semiconductor industry faces challenges

02:53on a global scale,

02:55Taiwan's key players must also navigate

02:57a shifting geopolitical landscape

02:59and a complicated relationship with China.

03:02It makes it almost impossible to tell

03:04what it will mean to the country's real estate market.

03:07Many engineers, like Lester,

03:09are already diversifying their investments,

03:12putting money into stocks alongside real estate.

03:25For more UN videos visit www.un.org

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