Fri, Aug 14, 2015 - Page 13 News List

Central bank to loosen its grip on property market

By Lisa Wang  /  Staff reporter

The central bank yesterday unveiled new measures to loosen its controls on the nation’s property market in northern Taiwan’s suburban areas, given softening market sentiment and falling housing transactions.

It is the first relaxation since the nation’s monetary policymaking body imposed selective control measures to curb the nation’s overheating property market five years ago.

“We found housing prices have been stabilizing,” the bank’s Deputy Governor Yang Chin-lung (楊金龍) told a media briefing.

“We found that in certain areas, the rise in house prices is slowing Housing transactions have reduced and new housing loans have also declined.”

Housing prices in those areas are also relatively lower, Yang said.

A total of six districts — including New Taipei City’s Bali (八里) and Yinge (鶯歌) districts, as well as Taoyuan City’s Taoyuan (桃園), Lujhu (蘆竹), Jhongli (中壢) and Gueishan (龜山) districts — are to be off the central bank’s radar, according to a statement.

Credit restrictions have been fully scrapped in those areas, the bank said.

In addition, the central bank has raised the ceiling on mortgage loans to 60 percent form the current 50 percent for upscale housing buyers, or private residential property bought by corporations as well as third-home buyers, the statement said.

Taiwan Institute of Economic Research (TIER, 台灣經濟研究院) economist Gorden Sun (孫明德) yesterday said that “the central bank’s latest move is a slight relaxation on certain selective areas, where housing transactions have frozen lately.”

“But, this will not herald an extensive removal of the central bank’s curb on the local property market,” Sun said.

The central bank’s credit restrictions on housing in Taipei remain unchanged.

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