Reported 7 months ago
Amid the hot housing market, on June 14, 2024, at 3:25 a.m., the Central Bank introduced the sixth wave of selective credit controls, including a 0.25% increase in deposit reserve ratio. However, housing market trends expert Li Tongrong pointed out that the New Qing'an initiative is actually driving the market frenzy, akin to a 'new youth drug', and if the government does not adjust it, a market storm is bound to occur. Li criticized the Central Bank's measures as merely reprising old tactics and failing to address the root cause of soaring property prices caused by the widespread manipulation and speculation associated with the New Qing'an project and pre-selling futures. Despite knowing that New Qing'an fuels the market frenzy, the government led by Lai Ching-te hesitates to act against it, largely because the policy was rushed out as a pre-election move to attract younger voters and criticizing it now would be politically challenging. The cabinet has disregarded external criticisms accusing New Qing'an of being the main culprit behind the housing market frenzy, sticking to the narrative that the policy is well-intentioned and must be fully implemented until its expiry in two years. Li Tongrong criticized the government for handling the situation with kid gloves compared to previous administrations which took more aggressive measures to curb real estate speculation.
Source: YAHOO