The National Development Council (NDC) is considering creating a business climate index on Taiwan’s property market, allowing policymakers to better monitor market movements and intervene if necessary, NDC Minister Kung Ming-hsin (龔明鑫) said yesterday.
Kung made the remarks at a meeting of the legislature’s Economic Committee where lawmakers from across party lines voiced concerns about housing price hikes driven by capital repatriation.
Kung said that the council is assessing the possibility of creating an index designed to provide more accountable and transparent information than data provided by private-sector market analysts, and could help improve policymaking.
Photo: Liao Chen-huei, Taipei Times
The council would compile a report on the matter within a week, Kung said, but declined comment on whether the local property market is overheated and requires government action, due to unclear data.
The housing price to annual income ratio in Taiwan has dropped from 9.46 to about 8, suggesting that the market in most areas is stable, Kung said.
Housing prices in Taipei still lag behind the peaks in 2014, but are approaching new highs in Taichung, he said, adding that housing prices are also relatively high in Tainan and Kaohsiung.
The upward trend has drawn attention from the central bank, the Ministry of Finance and the Ministry of the Interior, and led to discussions among the agencies, Kung said, adding that the council is moderating the conversation.
The finance ministry has said it would not extend favorable tax conditions that are due to expire in August next year to attract capital return.
Capital repatriation is believed to have fostered this year’s property boom, while trading elsewhere in the world is taking a hit amid the COVID-19 pandemic, analysts have said.
Kung said that it has not yet been decided whether the real estate climate gauge should take the form of an index, an indicator or another form.
The government has to be careful on the issue because tightening measures might hamper the economy, Kung said.
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