Central Bank Slightly Loosens Housing Market Controls; Directors Vote Against, Fearing Resurgence of Housing Price Increase Expectations
Taiwan's Central Bank, in its first-quarter board meeting, kept interest rates frozen while easing some housing market controls, raising the maximum loan-to-value ratio for individuals' second housing loans from 50% to 60%. Some directors voted against this decision, fearing a resurgence of housing price increase expectations, making the real estate market's future movements a key focus.
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- 📰 Published: April 30, 2026 at 18:02
- 🔍 Collected: April 30, 2026 at 18:31 (29 min after Published)
- 🤖 AI Analyzed: April 30, 2026 at 18:40 (8 min after Collected)
(Central News Agency reporter Pan Zihui, Taipei, 30th) The Central Bank's first-quarter board meeting decided to keep interest rates frozen for the eighth consecutive time and slightly loosened housing market controls. The summary of the board meeting minutes released today shows that a central bank director voted against this, stating that loosening control measures might slightly ease the previously suppressed expectation of rising housing prices, and thus could not agree.
The Central Bank's first-quarter board meeting decided to maintain policy interest rates, which was in line with expectations, but loosening housing market controls was unexpected by the market.
The Central Bank stated that in response to public petitions for individuals applying for a second housing loan for family or self-occupancy, the maximum loan-to-value ratio for individuals' second housing purchases nationwide was appropriately adjusted from 50% to 60%. Central Bank Governor Yang Chin-long previously admitted that the directors did not unanimously agree.
According to the latest released minutes summary, the central bank director who voted against pointed out that when people expect housing prices to rise, housing demand increases accordingly, which in turn pushes up housing prices. Therefore, the expectation of rising housing prices must be suppressed. Currently, the policy has slightly curbed the expectation of current housing price increases, and it is necessary to pay attention to the potential impact of loosening control measures on this expectation.
A director stated that domestic research shows that the central bank's credit controls have an insignificant effect on individuals' second housing loans, but the most significant effect is on individuals' first housing loans when they already own a house. Although agreeing to relax the maximum loan-to-value ratio for individuals' second housing loans, it is hoped that supporting measures will be provided to strengthen the regulations for individuals' first housing loans when they already own a house, to prevent the market from perceiving the central bank's credit control measures as softening and to eliminate housing market expectations.
Another director also said that when the central bank raises the loan-to-value ratio for second housing, there should be relevant supporting measures, and continuous attention should be paid to the public's demand for self-occupied second housing loans, balancing the handling of housing market control measures.
Some directors also warned that the Middle East war driving up oil prices might trigger rising inflation expectations, which could cause funds to flow into the housing market, and the central bank should prepare for this.
During the meeting, several directors were concerned about the deadline for selling existing homes under the home exchange assistance measures. A director pointed out that currently, home exchangers face the pressure of selling their old home within 18 months. In addition to relaxing the maximum loan-to-value ratio for second housing loans, it is suggested to consider adjusting the home selling deadline for home exchangers. Another director warned that if the deadline is extended, it might weaken the control effect and should be carefully weighed.
Central bank directors also expressed concern about the unsold new housing problem, but their views were slightly divided. One director believed that unsold new housing should be resolved by market price mechanisms to resolve the excess supply in the housing market, rather than by adjusting credit control measures to alleviate the pressure of new housing supply.
Another director said that with the gradual release of new housing, it is necessary to appropriately relax the restrictions on the loan-to-value ratio for second housing purchases to allow the real estate market to develop in a healthier direction. Moreover, under high housing prices, this time only the maximum loan-to-value ratio for second housing purchases was relaxed, and other control measures were not loosened, which should prevent inappropriate speculation and other overheating situations. (Edited by Pan Yijing) 1150430
The Central Bank's first-quarter board meeting decided to maintain policy interest rates, which was in line with expectations, but loosening housing market controls was unexpected by the market.
The Central Bank stated that in response to public petitions for individuals applying for a second housing loan for family or self-occupancy, the maximum loan-to-value ratio for individuals' second housing purchases nationwide was appropriately adjusted from 50% to 60%. Central Bank Governor Yang Chin-long previously admitted that the directors did not unanimously agree.
According to the latest released minutes summary, the central bank director who voted against pointed out that when people expect housing prices to rise, housing demand increases accordingly, which in turn pushes up housing prices. Therefore, the expectation of rising housing prices must be suppressed. Currently, the policy has slightly curbed the expectation of current housing price increases, and it is necessary to pay attention to the potential impact of loosening control measures on this expectation.
A director stated that domestic research shows that the central bank's credit controls have an insignificant effect on individuals' second housing loans, but the most significant effect is on individuals' first housing loans when they already own a house. Although agreeing to relax the maximum loan-to-value ratio for individuals' second housing loans, it is hoped that supporting measures will be provided to strengthen the regulations for individuals' first housing loans when they already own a house, to prevent the market from perceiving the central bank's credit control measures as softening and to eliminate housing market expectations.
Another director also said that when the central bank raises the loan-to-value ratio for second housing, there should be relevant supporting measures, and continuous attention should be paid to the public's demand for self-occupied second housing loans, balancing the handling of housing market control measures.
Some directors also warned that the Middle East war driving up oil prices might trigger rising inflation expectations, which could cause funds to flow into the housing market, and the central bank should prepare for this.
During the meeting, several directors were concerned about the deadline for selling existing homes under the home exchange assistance measures. A director pointed out that currently, home exchangers face the pressure of selling their old home within 18 months. In addition to relaxing the maximum loan-to-value ratio for second housing loans, it is suggested to consider adjusting the home selling deadline for home exchangers. Another director warned that if the deadline is extended, it might weaken the control effect and should be carefully weighed.
Central bank directors also expressed concern about the unsold new housing problem, but their views were slightly divided. One director believed that unsold new housing should be resolved by market price mechanisms to resolve the excess supply in the housing market, rather than by adjusting credit control measures to alleviate the pressure of new housing supply.
Another director said that with the gradual release of new housing, it is necessary to appropriately relax the restrictions on the loan-to-value ratio for second housing purchases to allow the real estate market to develop in a healthier direction. Moreover, under high housing prices, this time only the maximum loan-to-value ratio for second housing purchases was relaxed, and other control measures were not loosened, which should prevent inappropriate speculation and other overheating situations. (Edited by Pan Yijing) 1150430