Reported 7 months ago
On June 14, 2024, at 7:40 am, the Central Bank announced during its board meeting that it would keep policy interest rates unchanged. In response to the rising housing market, the Central Bank introduced two measures in the six major cities and Hsinchu area, limiting the maximum loan-to-value ratio for the second homebuyers to 60% and increasing the New Taiwan Dollar reserve requirement rate by 1 digit. However, the public feels disconnected from the anti-speculation policy, with real estate agents criticizing it as ineffective and targeting the wrong group. Despite the government's efforts to curb property speculation, the public still finds the cost burdensome, especially considering stagnant wages over the past two decades. The reasons behind the persistently high housing prices are being questioned, with some attributing them to the Financial Ministry's 'New Youth Safety Housing Loan Policy.' The Central Bank Governor, Yang Chin-long, mentioned that while the intentions behind the policy were good, any loopholes should be addressed by the relevant ministry, ruling out the Central Bank's intervention. Additionally, the Treasury Minister, Chuang Tsui-yun, highlighted measures to prevent first-time homebuyers from being exploited as 'straw buyers' by investors, emphasizing stricter control and supervision by public banks. As the 'New Youth Safety Housing Loan Policy' sparked a frenzy in the housing market, the Central Bank further implemented measures for the six major cities and Hsinchu area, including reducing the maximum loan-to-value ratio for second homebuyers to 60% and increasing the New Taiwan Dollar reserve requirement rate by 1 digit. Real estate agents expressed concerns that these measures may affect those looking to change homes, as they now need to provide a higher down payment. Despite the Central Bank's attempt to curb property speculation, there are doubts about the effectiveness of the measures and criticism that they may have missed the target group, focusing more on existing homeowners rather than speculative buyers. The involvement of the Financial Ministry's authority complicates the situation, making the Central Bank's actions seem insufficient. Taipei / Integrated Report Editorial / Network Center More TV News reports Central Bank Strikes Again at Property Speculation! Cathay Financial Holdings Chairman, Lee Chang-keng: Declaration of Effectiveness Greater than Actual Impact Central Bank Aims to Curb Property Speculation by Raising 'Reserve Requirement Rate by One Digit' Tightening Monetary Policy Raising Reserve Rate by One Digit without Raising Interest Rates! Central Bank Launches the Sixth Round of Housing Market Control 'Second Home Limit Loan to 60% in Specific Areas'
Source: YAHOO