The government’s response was met with mixed reactions.
Chao said the local property market would soon rebound if the government followed through on its plan to secure loans for both developers and home buyers.
But Chang Chin-oh (張金鶚), professor of economics at National Chengchi University, disagreed.
He said the government should not interfere with the market’s price correction, which he said was the main reason why home buyers were adopting a wait-and-see attitude.
Chang said the government’s policies were likely to prolong the market’s slowdown by preventing it from hitting bottom, which usually ensures a quick recovery.
The government appeared not to have a solid plan, he said.
Financial Supervisory Commission Chairman Gordon Chen (陳樹) said the government would soon facilitate a review process to identify steps that would benefit mortgage borrowers without interfering with banks’ autonomy in setting credit policies.
He did not say whether the policies would be mandatory or if banks would face penalties if they refused to cooperate with the government’s plans.
ADDITIONAL REPORTING BY STAFF WRITER
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