The real estate industry in Taiwan has been influenced by a new real property tax regime in recent years. Many scholars in Taiwan have thus brought up their views about whether the regime’s luxury tax helped realize housing justice; however, they failed to explore the price fluctuations before and after the amendments to the tax law took effect. A total of 65 samples, from 2001 to 2017, were studied, and the empirical results demonstrated: (1) There was a significantly positive correlation between three major house price indexes and economic growth. (2) The three major house price indexes all showed clear signs of pricing bubbles before the law was amended. (3) The three major house price indexes all indicated an obvious decline in housing prices after the amendments to the law came into effect. (4) Among the six special municipalities in Taiwan, there was a significantly positive correlation between the housing market and economic growth in Taipei City, New Taipei City, Taoyuan City, and Kaohsiung City, while no significant correlation was observed in Taichung City as well as Tainan City. (5) The property bubble in New Taipei City was more obvious than that in other cities in Taiwan.
