Housing Market on High Alert: Central Bank’s Iron Fist Sparks Fears of Mortgage Loan Cutoffs
Central Bank Launches Seventh Wave of Housing Market Controls
Reported by Wu Renew and Wu Junde in Finance Center/Taipei
The central bank has launched the seventh wave of housing market controls, which it claims is the strictest in history. Construction Group Chairman Lai Zhengyi has asked the government for a favor to protect those who have already signed house purchase contracts from being retroactive.
Lai Zhengyi expressed hope that the government can extend its hand to prevent conflict between those who really want to buy houses. He also suggested that the central bank establish a “sunset clause” to protect agreements already signed.
Yang Xinlong, Central Bank President, stated that the central bank is taking drastic measures to regulate the housing market. The seventh wave of credit controls and the crackdown on housing will affect common people, corporate bodies, builders, and real estate agents.
The loan percentage reduction is applicable nationwide, and the central bank has raised standards by one tick, which would restore at least 125 billion yuan in market funds. However, experts are worried that the central bank’s measures could lead to a wave of mortgage loan cutoffs.
Executive President Zhuo Yongtai emphasized that the central bank’s measures are aimed at regulating the housing market, not suppressing it. However, the impact on residents, especially multi-home buyers and small builders, is significant.
Construction stocks turned green at the close on Friday, with companies like Sang Development, Huangjiang, and Farglory hitting their limits. The central bank’s measures have raised concerns about the potential for a wave of mortgage loan cutoffs and the impact on the housing market.