Housing prices in Taipei and New Taipei rose again in July — good news for sellers and existing homeowners, but added pressure on young people still hoping to buy.

• Taipei City's housing price index hit another record high, up more than 6% year-on-year. New Taipei City also rose, though it has yet to return to its previous peak.
• The main driver is the imminent expiry of the "Youth Housing Loan 2.0" preferential mortgage programme, with eligible first-time buyers rushing to sign contracts and file applications before the end of July.
• Youth Housing Loan 3.0 imposes stricter limits on total property price and applicant age, effectively squeezing a group of buyers out of the market and creating a short-term rush to get in.
• Another source of demand comes from high-net-worth buyers shifting some of their stock market gains into real estate as part of their asset allocation, seeking long-term stability rather than short-term price gains.

Outlook: once the rush subsides, first-time buyer demand may enter a lull. The market's direction from here will depend on the lending terms of Youth Housing Loan 3.0 and on whether stock market capital continues to flow into property.