Thu, Jul 25, 2013 - Page 14 News List

New housing loans decline on concern over Fed’s QE exit

By Amy Su  /  Staff reporter

New housing loans granted by the nation’s five leading banks declined last month as worries about the US Federal Reserve exiting quantitative easing (QE) dragged down the number of property transactions, the central bank said yesterday.

Bank of Taiwan (台灣銀行), Taiwan Cooperative Bank (合作金庫銀行), Land Bank of Taiwan (土地銀行), Hua Nan Commercial Bank (華南商業銀行) and First Commercial Bank (第一銀行) granted a total of NT$40.12 billion (US$1.34 billion) in new housing loans last month, a decline of NT$2.61 billion from May’s NT$42.73 billion, the central bank said in its monthly statement.

It has been the first monthly decline in new housing loans granted by the five banks since February.

UNCERTAINTY

“The uncertainty over the possible ending of QE in the US may be the main factor leading to more potential home buyers having a wait-and-see attitude,” Chen E-dawn (陳一端), deputy head of the central bank’s economic research department, told a press conference.

Transfer of ownership of houses totaled 3,368 in Taipei last month, down 15.1 percent from May, while transfers in New Taipei City (新北市) fell 8.75 percent to 7,093 from a month earlier in line with the trend in new housing loans, Chen said, citing data from the Construction and Planning Agency.

The average interest rate on new housing loans granted by the five leading banks dropped to 1.95 percent last month from 1.986 percent in May, the statement said.

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