Cabinet approves new measures to curb real estate speculation
The cabinet has approved draft legal amendments to rein in real estate speculation.
The draft includes raising the maximum fine for illegal speculation from NT$5 million to NT$50 million.
The Ministry of the Interior says the proposed amendments to the Equalization of Lands Rights Act would tighten restrictions on transactions involving pre-sold houses.
The move comes as investors have flocked to purchase pre-sold houses and then quickly re-sell them at a profit, which has been driving up real estate prices islandwide.
Under the cabinet's proposal, the government will prohibit the re-selling of purchase agreements for pre-sold or newly constructed houses to third parties, except to a person's spouse and first- or second-degree relatives.
Housing developers will also be prohibited from assisting buyers wishing to transfer or re-sell their purchase agreements, with violators liable for a maximum fine of NT$3 million.
The draft measures will now be submitted to the legislature for approval.