In August last year, the central bank launched its seventh wave of credit controls on the real estate market, requiring 34 domestic banks to regulate loan volumes on a quarterly basis. This year, the central bank continues to closely monitor real estate lending and, in mid-February, summoned three major banks to assess why their loan reduction targets had not been met.
Taishin Bank President Lin Shu-chen (林淑真) stated that this year, personal mortgage lending will primarily focus on first-time homebuyers. Meanwhile, corporate development financing will face stricter controls, leading to an expected near-zero growth in real estate lending.
E.Sun Financial Holding Chairperson Joseph Huang (黃男州) noted that Taiwan’s real estate market remains on a downward trajectory, turning negative in the fourth quarter. He expects transaction volumes to keep shrinking this year, with prices stabilizing and negotiation margins widening. Additionally, ongoing labor and material shortages are driving up construction costs, which will provide some support for housing prices.
Huang also emphasized that the government’s policy is intended to cool housing prices, not trigger a market crash. A sharp decline in property values, he warned, would have serious consequences for individuals, society, and the financial sector, potentially leading to a financial crisis.