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Cabinet aims to boost fortunes of real-estate sector

The Cabinet gave the real-estate market a shot in the arm yesterday, announcing NT$300 billion in low-interest loans for home buyers.

The package is expected to benefit 160,000 families and bring in an additional NT$21.6 billion in tax revenues. The Cabinet expects to the program to increase GDP growth 1.1 percentage points to 5.41 percent.

The nation's economy continued to gain momentum in April with official data showing a slight overheating for the fifth consecutive month.

"Because the real-estate market acts as the locomotive of the nation's economy, we feel obligated to give it a boost," Premier Yu Shyi-kun said. "However, this will be the last such expenditure. In other words, home buyers will no longer be eligible for the package once the money runs out."

Yu made the remarks yesterday in Ilan County's Wuchieh township.

The government has provided NT$1.2 trillion in low-interest housing loans since 2000.

The package has benefited 620,000 families and brought in NT$99.1 billion in tax revenues.

The package offers a 2.3 percent interest rate for loans of up to NT$2.5 million for each family residing in Taipei City and NT$2 million for citizens residing outside of Taipei.

The new package, expected to last until next March, will offer a slightly higher interest rate of 2.425 percent.

Together, the old and new packages are projected to benefit 780,000 families and bring in NT$120.7 billion in tax income.

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