Soaring Housing Prices: Bankers' Association Chairman Suggests Leasehold Housing as Retirement Option

(Central News Agency, reporter Lu Yan-ci, Taipei, June 11) The Bankers Association stated on the 11th that amid high housing prices, leasehold housing, which does not require bearing the cost of land acquisition, offers the public another possibility to achieve their dream of homeownership. Tung Ruey-bin, Chairman of the Bankers Association and also Chairman of Mega Financial Holding Company, pointed out that not only young people but also the elderly cannot afford to buy a house. He is considering whether leasehold housing could serve as a retirement home, an option under the current high housing prices.

The Bankers Association of the Republic of China held a seminar on leasehold housing loans today, inviting Tong Jentsz-shiang, Taiwan's Representative to Singapore, to share Singapore's public housing (HDB) policy. Experts from various fields also explained the development practices, market prospects, value assessment, and loan practices of leasehold housing.

The Bankers Association stated that due to global inflation, the interest rate hike cycle, and continuously rising construction costs, housing prices in Taiwan remain high, making the burden of homeownership increasingly heavy for the public. Under these circumstances, the leasehold housing model offers another possibility. Since it does not require land acquisition costs, the total price threshold for leasehold housing is usually lower, giving the public a better chance to realize their dream of buying a home.

The Bankers Association explained that it hopes to assist financial institutions in promoting leasehold housing loan business while considering credit risks through cross-disciplinary discussions and exchanges. This would help achieve the policy goal of realizing housing justice and create a fairer and more sustainable future for Taiwan's housing market.

In his speech, Tung Ruey-bin, Chairman of the Bankers Association and Chairman of Mega Financial Holding Company, pointed out that leasehold housing is still a niche market in Taiwan. This may be related to many factors, such as the public's concept of "land ownership equals wealth," the small price difference between general housing and leasehold housing in the same area, or the immaturity of banks in handling related businesses. Therefore, he hopes to understand international experiences and the views of practitioners and developers to facilitate banks' future handling of leasehold housing loan businesses.

Tung Ruey-bin cited examples, noting that in the current leasehold housing market, the Lihpao Group has been long-term committed to related development, with the number of its cases ranking among the top in Taiwan. Taiwan Cooperative Bank, on the other hand, has more practical experience in handling leasehold housing loans to share.

Tung Ruey-bin said he hopes to provide clearer guidance to consider the possibility of leasehold housing, whether from an economic perspective or from the perspective of homebuyers. Facing high housing prices, he admitted that not only young people but also the elderly cannot afford to buy a house. He is also considering whether leasehold housing can be used as a retirement home, an option under high housing prices.

Tong Jentsz-shiang mentioned that Singapore invests in building public housing (HDB flats) on state-owned land and sells them to the public at preferential prices. The contract period is usually 99 years. Among Singapore's 4.15 million residents, the proportion of families living in HDB flats is as high as 77%. These flats are not only homes for citizens but also play an indispensable role in maintaining social stability and harmony.

Tong Jentsz-shiang shared that the success of Singapore's HDB policy is built on two complementary ecosystems: the financing ecosystem and the living function ecosystem. In addition to the government maintaining housing affordability through huge subsidies, the Central Provident Fund system allows over 80% of homebuyers to pay their mortgages. At the same time, the town planning model integrates various facilities, ensuring that each town has complete living functions and a comfortable living environment. (Editor: Yang Lanxuan) 1150611