Reported about 1 year ago
Huang Yourong/Taipei reported on June 10, 2024, at 4:10 PM. Concerns rise as the Central Bank holds its meeting on the 13th, with speculations of new housing market control measures, potentially expanding the second-home loan control from six municipalities adding Hsinchu to all of Taiwan. However, officials state that if the second-home loan control expands, it won't affect new applicants for green housing loans, but it will impact those who apply for a regular loan after receiving the green housing loan. Transactions soared in May, with Kaohsiung hitting a record high of 5,194 units, while the average approved green housing loan amount in April increased significantly to 821 million NTD. The latest financial stability report raises concerns about the warming housing market, hinting at further control measures possibly being implemented during the 2nd quarter meeting on the 13th, including lowering luxury home criteria, strengthening second-home loan percentage limits in the six municipalities, and potentially extending these controls across Taiwan. Officials note that the green housing loans verify no existing residential property at the time of application, hence the second-home loan control by the Central Bank won't affect first-time homebuyers, but could affect those who intend to purchase a second property after approval. The interest subsidy provided by the new green housing loans is essential for rigid self-occupied homeowners, attracting active loan applications due to its incentives, thus attributing to the overall market warming trends driven by various factors such as economy, supply and demand, and income, not solely linked with the new green housing loans.
Source: YAHOO