Central bank tackles property speculation

07 December, 2020

By ECCT staff writers

Taiwan’s central bank has tightened credit controls for real-estate financing in an attempt to reign in speculation in Taiwan’s real estate market.

Starting today, the loan-to-value (LTV) ratio would be capped at 60% for corporate buyers for their first property and drop to 50% for their second.

The measures are targeted at corporate and individual property investors and will not affect first-time homebuyers or people with real demand or relocation needs. For individual buyers, the LTV ratio only applies to their third home, which is set at 60%.

The measure was introduced as the government is facing increasing criticism at a time when domestic home prices have kept rising, which has made it difficult for the younger generation to get a foot on the housing ladder in Taiwan.

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