Reported 8 months ago
Publicly-owned banks in Taiwan have differing opinions on the housing market in the second half of 2024, with some predicting a moderate price rebound while others foresee high-end fluctuations. The Central Bank recently introduced the sixth wave of credit control measures, and the government is reviewing the new youth housing loan mechanism. The Financial Supervisory Commission emphasizes risk management in banks and protecting consumer rights, urging banks to ensure borrowers understand their future obligations and not be overly optimistic. Various factors contributing to high housing prices are analyzed, including abundant market funds, inflation driving property purchases for value preservation, and societal trends like aging populations prompting housing changes. State-owned banks are monitoring repayment sources, debt ratios, and loan-to-value ratios, assessing the difficulty of property prices falling by 2-3%. The new youth housing loan scheme has encouraged home purchases for those under 50, with about 90% borrowing for 20-30 years, showing a positive effect in promoting homeownership among young adults. Plans for managing the new youth housing loans were discussed at shareholder meetings for banks like Mega International Commercial Bank to ensure fair treatment of all loan customers.
Source: YAHOO