On Aug. 26 1989, a landmark sleepout of more than 5,000 people -- known as the Snails without Shells Alliance (
It was the defining event in the struggle of middle- and low-income earners against the cost of housing which had been spiralling upward at a fantastic rate since the 1980s.
While the movement continues and enters its 11th year today, those in the alliance feel that little has changed during the past several years.
Housing prices have, in fact, come down recently, but this is no consolation to the average low-income family who is still unable to afford to buy a house.
Since the 1989 movement, various low-interest housing loans have been introduced by the government, including a NT$150 billion funding package in 1998 by the KMT government and most recently a NT$320 billion program by the current DPP government.
Despite the fact that the government is spending more money than ever funding the purchase of houses, activists and scholars regard it merely as an attempt to boost the real estate market while of little help to those in need.
"It simply won't work. First, potential home-owners will be induced to buy their own residences earlier than they had planned. But soon they'll find themselves caught in a money pit and unable to afford any more," said the alliance's Lu Szu-yueh (盧思岳). "The result is that the banks will have to take over the losses of construction companies and the banking system will be struck severely by the large number of dead loans," Lu said.
New measures
In early August, the government unveiled a package designed to help first-time homebuyers, aged between 20 and 40, by providing mortgages at preferential interest rates of between 3 and 5 percent. Loans of 5.5 percent would also be available to the general public without restrictions on age or house ownership.
Chen Po-chih (
He also stressed that the government will not be lending money to construction companies but instead wants to stimulate demand so as to solve the current oversupply of housing.
Currently, there over 1.2 million residences around Taiwan that are uninhabited, not including new unsold units.
Nevertheless, the idea to resolve the oversupply problem is not appreciated by those who do not have faith in construction companies.
"I bet they'll be eager to build more houses after selling the unsold ones, and the oversupply problem will never end. The construction companies know exactly what they'll get and the policymakers just can't ignore that," said Hua Chang-I (
Going at a snail's pace
Lee Hsing-chang (
The group struck a chord with the public and more than 5,000 people crammed the streets of Taipei to urge the government to take steps to stop rapidly inflating housing prices.
The mass sleepout on the expensive land aimed to show the plight of middle- and low-income earners in the face of soaring housing prices.
Nevertheless, despite receiving overwhelming support from the public at the beginning, the movement began to lose momentum in 1992, and has been largely out of the media spotlight in recent years.
It was in 1998, when disappointed by the KMT government's use of NT$150 million to boost the real estate market, that the alliance reorganized and got ready for a long-term fight for reform of housing policies.
"The government was not indifferent to our movement and it did try to make a difference. But what has been done is not helping those who cannot afford a house. It's meant to shelter the construction companies,who have been caught in the financial storm," Lu said.
"The policies are always set to encourage purchase of real estate. But while the prices are still unaffordable, these kinds of policies will only saddle the average housebuyer with large debts that will force them to compromise their quality of life," Lu added.
"We thought things would have changed with the coming of the new government. But sadly they didn't, and we even found that it is spending more money on the wrong policies," he said.
Tenants left out in the cold
The traditional view that home ownership means security is deeply rooted in Taiwan society, where as many as 80 percent of all households in the country own their own home.
Those without their own homes are generally those from low-income families and the middle-class young. While some of these people are working hard to buy a house of their own, others simply feel comfortable living in rented houses.
However, the latter group has felt "discriminated" against when it comes to housing policies.
"To cite one instance, those people don't get tax deductions on rent payments as home owners do on their mortgage payments," said Lu Ping-yi (
"And they have received far less in subsidies from the government than housebuyers. If the NT$320 billion-plus package sounds like good news for potential homebuyers, where's the good news for those renting houses?"
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