In order to curb the housing market boom driven by the new Qing'an policy, the Central Bank of Taiwan held its third quarter board of governors meeting yesterday and decided to keep the policy interest rate unchanged for two consecutive years, but raised the bank deposit reserve ratio by 1 percentage point (0.25 percentage point). .
Not only that, the central bank also simultaneously implemented the seventh wave of housing market controls. Central Bank President Yang Jinlong said that Taiwan’s housing market is already overheated. In order to further curb speculation and housing hoarding in the housing market, the central bank revised the " Real Estate Mortgage Business Regulations " and in September 2024 Effective from the 20th, the main amendments are as follows:
- There is no grace period for the first home purchase loan : If a natural person already has a house in his name, his first home purchase loan shall not have a grace period.
- The loan percentage for the second household to purchase a house is reduced to 50% : The maximum percentage for the second household to purchase a house by a natural person is reduced from 60% to 50%, and is extended to the whole country.
- The loan ratios for legal persons and high-priced residences have been reduced : the loan ratios for house purchase loans for corporate legal persons and for natural persons to purchase high-priced residences have dropped from 40% to 30%.
- The loan percentage for surplus housing is lowered to 30% : the maximum loan percentage for surplus housing is reduced from 40% to 30%.
Construction stocks are in the green
When Taiwan stocks opened today, the market and construction stocks showed two different sentiments. The weighted index of Taiwan stocks closed up 116.73 points, or 0.53%, today. However, construction stocks were affected by the central bank's housing crackdown policy and closed down 6.26%.
Further observation revealed that among the 55 construction stocks, a total of 13 stocks closed at the lower limit, and only 3 stocks closed in an upward trend.
Small builders cry out: They are about to die
In addition to the stock market, the central bank's new system has also directly hit many home buyers and small builders. According to China News Network , the All-Regional Real Estate Development Association said that the central bank has raised the deposit reserve ratio for two consecutive quarters, making funds even tighter. Furthermore, by lowering loan percentages across the board, the loan pressure on home buyers has become increasingly heavy. This method only targets people who really need housing.
In addition, in terms of industry, the central bank's approach has limited impact on large builders. Instead, many small builders will be eliminated. The All-China Federation of Real Estate Development Associations stated:
Yesterday, the Guild received a large number of calls, and many small builders expressed that they were "almost unable to survive."
Regarding the central bank’s crackdown on the new housing system, Lai Zhengyi, honorary chairman of the National Chamber of Commerce and Industry and chairman of Xianglin Group, even said bluntly, “This time the crackdown is really too strong. Is it going to knock the real estate industry to the ground?” Lai Zhengyi pointed out, The new system for renting houses will inevitably lead to many contract disputes. It is recommended that the central bank should establish a sunrise clause so that customers who have signed contracts will not be retroactively involved.
Lai Zhengyi went on to say:
There is no grace period for loans to buy your first home. Does the bank have to temporarily change the loan contract with the borrower?
As for the maximum loan percentage for the second home purchase of a natural person, it has gone from 70% in the sixth capital to only 60% in the seventh capital. Now it will be reduced to 50%, and it applies to all Taiwan. He has heard from people who are changing their houses. What should people who are wailing and have signed a contract to buy a new house and prepare to change their house do? If they can't come up with more cash to provide for themselves, should they be asked to terminate the contract with the builder? Who has to pay liquidated damages?
Lai Zhengyi continued to point out that the maximum percentage for corporate purchases of high-priced residential loans and third-family home purchase loans, as well as builders' remaining house loans, has been reduced from 40% to 30%. Small builders will not be able to survive, and they may not be able to turn around in the short term. The company will also face a crisis of bankruptcy.
Three major ethnic groups are most affected
Under the most stringent prevention measures in history, experts point out that there are three types of people who suffer the most:
1. For those who want to change houses, the difficulty is much higher.
2. Heirs, who inherit the inheritance of their elders and only hold part of the shares, belong to a household in their name. They are classified as non-first-time buyers by the central bank and there is no grace period.
3. First-time buyers. Most of them are drifters from the north. This kind of people is the worst off. They own a house in their hometown but rent a house in Taipei. If they want to buy a house to live in the north, they cannot apply for Xinqing'an and there are no loans. Grace period.
