According to Global Property Guide, an international real estate website, Taiwan has the third highest annual growth in house prices among Asia Pacific nations, trailing only Singapore and Hong Kong. The result has further cast doubt over the effectiveness of the government's housing related policies.

According to an international housing market website, Global Real Estate Index, Taiwan is the third on the list for the highest increase in housing market over the past year, a high of 12%; behind Singapores 38% and Hong Kongs 25%.

Many experts worry that this is a clear indication of a real estate bubble forming.

According to these experts, the highest fluctuation in real estate is in the surrounding areas in the metropolitan area of Taipei and most of the buyers are investors which also indicates there has been no obvious result in the governments effort in lowering the housing price by increasing interest rate on loans.

These experts also say that in order to fight the rising real estate price, the government must make more restrictions for the builders and investors.

Also, there should be more taxing to cool the overheating real estate business.

The ideas may be effective, but whether they will be exercised or even discussed, is another question waiting to be answered.