ABSTRACT
This chapter analyses the social relations of Taiwan's system of pre-sale housing provision in connection with a changing market situation. It argues that the changing housing market and the characteristics of pre-sale housing provision reciprocally affect one another. The chapter provides a general picture of the unstable market situation in terms of both housing output and prices. It discusses an estimate of market share of pre-sale houses as evidence of its influence upon the housing market as a whole. The chapter focuses on the activities of the agents in different market situations to show how their social relations influence the market situation and vice versa. In 1984, when the housing market was stagnant, promoters favoured producing low cost buildings to reduce their risk. The decontrolling of the financial market in the mid eighties helped buyers and promoters with their mortgages and building loans.
