Housing in Taiwan: State Intervention in a Market Driven Housing System

Abstract

This paper traces the development and problems of state intervention and market provision of housing in Taiwan in the context of her socio-economic and demographic changes in the last few decades. Although housing in Taiwan is mainly market driven, the market does not appear to be functioning in a mature manner as one may expect. On the other hand, state intervention, which is being depicted as marginal in housing, has been more proactive and influential. The paper concludes that despite the current housing system in Taiwan which suggests Taiwan to be offering a sharply contrast model from other Asian Tigers in state intervention in housing, the strategies she adopted in the beginning phase of housing development was in fact similar to that employed by other Asian Tigers. Yet, the unique socio-economic and political conditions in Taiwan have driven her away from a state-led trajectory in housing development to a market driven system.