Booming consumer demand last month helped boost domestic banks’ mortgage, construction, auto and other loans to record-high levels, central bank data released on Friday showed.
Housing loans last month grew for the 22nd consecutive month to NT$6.98 trillion (US$226.4 billion), up NT$36 billion, or 0.52 percent, from the previous month, the data showed.
On an annual basis, housing loans grew NT$329.6 billion, or 4.96 percent — the fastest pace in eight years, they showed.
Construction loans — which mostly include loans to construction companies for housing projects and land development — reached NT$1.86 trillion at the end of last month, rising NT$26.1 billion, or 1.42 percent, from November last year, the data showed.
On an annual basis, construction loans rose by NT$119.7 billion, or 6.89 percent, posting the 10th consecutive month of expansion and growing at the fastest pace in six years.
Construction loan data are important because they indicate the construction sector’s attitude toward the real-estate market.
The central bank said the year-end period is traditionally a high season for the real-estate market.
Some banks offered beneficial mortgage rates to boost lending and bolster their balance sheet, the Chinese-language Liberty Times (the Taipei Times’ sister newspaper) quoted the bank as saying on Saturday.
As for the rise in construction loans, the central bank said it reflected construction firms’ demand for loans to boost their working capital intended for land purchases, marketing for new projects and year-end bonuses, the newspaper reported.
The numbers suggest recovering confidence among home buyers and construction firms, and the Taiwan Institute of Economic Research’s (TIER, 台灣經濟研究院) latest business sentiment gauge showed that the composite index for the construction sector last month rose 1.84 points from a month earlier to 194.62, ending four months of declines.
However, the positive sentiment is not across the board, but limited to certain rezoning areas and a few residential projects, meaning that the market might see a flattish performance in the short term, the institute said in a report issued on Friday.
The central bank data also indicated rising consumer loans in other categories.
Auto loans last month rose for the fourth consecutive month to NT$140.5 billion, up NT$3 billion, or 2.18 percent, from the previous month, thanks to promotion campaigns by dealers and replacement demand spurred by a tax break that encourages owners to trade in old vehicles for new ones.
Meanwhile, revolving credit for credit cards last month hit the highest level in four years, reaching NT$112.89 billion, up NT$1.3 billion, or 1.16 percent, from the previous month, the data showed.
Other personal loans also posted a new multiyear high at NT$926.52 billion, up NT$4.68 billion, or 0.5 percent, from the previous month, the data showed.
Department stores’ annual sale promotions and local lenders’ aggressive consumer financing campaigns helped boost the loans, the central bank said.
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