In an effort to suppress real estate prices, the Ministry of Finance has proposed to curb housing speculation by adding a new tax of at least 10% on property transactions. But some experts soon pointed out that while the new measure would be effective on a short term basis, it still doesn't address the key issue of the problem, which is the overabundance of capital in the market.

It is almost an impossible dream for the average office workers in Taipei city to buy a place to live, thus,

the Ministry of Finance is going to tax the sales income of real estate investors who is to sell off the property within a year of initial purchase that is no for self usage, pre-constructed house sales and all luxury items with the rate of at least 10%.

The MOF said that fairness of tax on rent has always been the policy and hopes the public can respond to its effort.

However, scholars believe that the policy would increase the cost of real estate investor and create pressure on them and result can be seen in the short run, but in the long run,

it is still important to look at the markets fund in real estate for the transactions of selling real estate is not the main cause of high real estate prices but too much fund in the market.

The MOF is working on details of the new policy and will propose the new measure within a month, hoping to make it in time for next Februarys Legislative new term.

In addition, the MOF is continuing its taxation review of luxury properties and pre-constructed real estate transfer cases.