Construction and housing loans hit record highs, says central bank

  • By Crystal Hsu / Staff Reporter

Last month, housing loans rose 9.39% from a year earlier to a new high of NT$9.22 trillion ($314.14 billion), while housing loans Construction soared 13.3% to NT$2.9 trillion, also a record high, the central bank said on Wednesday.

However, both lost momentum from March as buyers and developers became cautious amid rising interest rates and growing economic uncertainty, he said.

It was the first time that housing loans exceeded NT$9 trillion, as real demand continued to support the housing market, undisturbed by four waves of credit checks, the central bank said.

Mortgage transactions are a key confidence gauge of the country’s housing market and the slowdown is likely linked to fewer business days last month, he said.

For this month and beyond, the surge in COVID-19 cases would weigh on buying interest, but potential buyers would resume looking for a home once the outbreak stabilizes, the central bank said.

Although construction loans, which reflect the confidence of property developers, rose by a double-digit percentage last month, the figure marked the slowest growth in more than two years, he said. .

Developers have shrewdly adjusted their strategy in line with policy measures, he said, adding that they have refrained from launching new projects in areas with high supply and been more active in those with high business potential. .

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