Anti-Speculation Measures Take Effect: New Mortgages Hit 3-Year Low in Q1
The Taiwan government's series of measures to curb housing speculation are yielding results. In the first quarter of 2026, new mortgage loans from the five major banks plummeted by 26.5% year-on-year to NT$152.554 billion, marking a three-year low for the same period.
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- 📰 Published: April 22, 2026 at 19:37
- 🔍 Collected: April 22, 2026 at 20:01 (24 min after Published)
- 🤖 AI Analyzed: April 22, 2026 at 22:21 (2h 19m after Collected)
TAIPEI, April 22 (CNA) — Government measures to curb housing speculation have successfully cooled the real estate market. The Central Bank announced today that new mortgage loans from Taiwan's five major banks reached NT$152.554 billion in the first quarter, a 26.5% decrease compared to the same period last year and the lowest level in three years. Central Bank officials stated that the housing market is cooling and continues to be in a consolidation phase.
According to Central Bank statistics, the weighted average interest rate for new loans from the five major banks (Bank of Taiwan, Land Bank of Taiwan, Taiwan Cooperative Bank, First Commercial Bank, and Hua Nan Bank) was 2.105% in March 2026, up 0.019 percentage points from February. This was primarily due to an increase in interest rates for working capital loans.
Regarding mortgage loans specifically, the amount of new mortgages in March was NT$59.024 billion, a significant increase of NT$22.26 billion compared to February. However, the interest rate slightly decreased by 0.016 percentage points to 2.306%.
Yeh Sheng, deputy director of the Economic Research Department of the Central Bank, explained that the significant increase in March was due to the low base in February, which coincided with the Lunar New Year holiday and fewer working days. Additionally, some banks processed more 'Nest Building' preferential loans for civil servants in March, which have relatively lower interest rates, dragging down the average mortgage rate.
For the first quarter of this year, new mortgages from the five major banks totaled NT$152.554 billion, a decrease of NT$54.996 billion or 26.5% from the previous year.
Yeh noted that after a buoyant market in 2024, the Central Bank introduced the 7th wave of selective credit control measures. The market began to cool in 2025, and Q1 2026 shows signs of stabilizing. Indicators reflecting transaction volume, such as building ownership transfers in the six major municipalities, fell by only 2.15% year-on-year in Q1, a significant narrowing from previous double-digit declines, with March even showing a 0.4% year-on-year increase.
Regarding housing prices, the Sinyi Housing price index showed that Taipei City saw a monthly increase in March, while New Taipei City saw a decline compared to February.
Yeh believes the market is in a consolidation phase as transaction volumes cool and prices undergo correction. He noted that falling prices might attract some buyers back into the market. He concluded that the 7th wave of credit controls has been effective, and the Central Bank adjusted the measures slightly in March while continuing to monitor the market's progress.
According to Central Bank statistics, the weighted average interest rate for new loans from the five major banks (Bank of Taiwan, Land Bank of Taiwan, Taiwan Cooperative Bank, First Commercial Bank, and Hua Nan Bank) was 2.105% in March 2026, up 0.019 percentage points from February. This was primarily due to an increase in interest rates for working capital loans.
Regarding mortgage loans specifically, the amount of new mortgages in March was NT$59.024 billion, a significant increase of NT$22.26 billion compared to February. However, the interest rate slightly decreased by 0.016 percentage points to 2.306%.
Yeh Sheng, deputy director of the Economic Research Department of the Central Bank, explained that the significant increase in March was due to the low base in February, which coincided with the Lunar New Year holiday and fewer working days. Additionally, some banks processed more 'Nest Building' preferential loans for civil servants in March, which have relatively lower interest rates, dragging down the average mortgage rate.
For the first quarter of this year, new mortgages from the five major banks totaled NT$152.554 billion, a decrease of NT$54.996 billion or 26.5% from the previous year.
Yeh noted that after a buoyant market in 2024, the Central Bank introduced the 7th wave of selective credit control measures. The market began to cool in 2025, and Q1 2026 shows signs of stabilizing. Indicators reflecting transaction volume, such as building ownership transfers in the six major municipalities, fell by only 2.15% year-on-year in Q1, a significant narrowing from previous double-digit declines, with March even showing a 0.4% year-on-year increase.
Regarding housing prices, the Sinyi Housing price index showed that Taipei City saw a monthly increase in March, while New Taipei City saw a decline compared to February.
Yeh believes the market is in a consolidation phase as transaction volumes cool and prices undergo correction. He noted that falling prices might attract some buyers back into the market. He concluded that the 7th wave of credit controls has been effective, and the Central Bank adjusted the measures slightly in March while continuing to monitor the market's progress.