New Youth Housing 3.0 Is Not Fueling Unfair Price Hikes! Juan Qinghua: Triple Restrictions + Credit Controls Will Lead to 'Lower Volume, Stable Prices' in the Housing Market

Deputy Finance Minister Juan Qinghua stated today (16) at a press conference that the criticism accusing the New Youth Housing 2.0 program of fueling rising home prices is misplaced, as the policy was launched during an already upward market trend and thus became a 'scapegoat.' In contrast, the 3.0 version, under the dual safeguards of 'triple restrictions' and central bank credit controls, is expected to guide the housing market toward stability, avoiding extreme fluctuations.

Juan analyzed that when New Youth Housing 2.0 was launched, the southern real estate market was already overheating due to a factory construction boom, leading to suspicions that the policy was driving up prices. However, the current market environment is vastly different, now showing signs of 'lower transaction volume and stable prices,' with some areas even experiencing price corrections. Additionally, the Ministry of the Interior is fully prepared to work with local governments to strictly investigate any market disorder.

Regarding the newly introduced income cap of NT$2 million per year in the 3.0 plan, Juan provided a detailed explanation of its calculation logic. This figure is based on the Directorate General of Budget, Accounting and Statistics' (DGBAS) 2024 Household Income and Expenditure Survey, factoring in average household consumption expenditure of approximately NT$887,000 and savings of NT$276,000, and applying the financial principle that 'housing expenses should not exceed one-third of income.'

After precise calculations, the threshold came out to around NT$1.74 million. The government adopted a more lenient standard, setting the cap at NT$2 million. Juan emphasized that this anti-wealth mechanism will filter out high-income earners, ensuring resources are accurately directed to young people in need. He estimated that only about 8.6% of applicants would be affected, meaning over 90% of genuine first-time buyers can still qualify.

On the age limit of 50, Juan explained it reflects modern societal trends of delayed marriage and later home purchases. Setting the threshold too low would exclude many individuals who marry in their mid-30s and only consider buying a home years later. He believes 50 is a balanced point that preserves the policy's intent while accommodating real-world conditions, aiming to prevent high-net-worth seniors from occupying resources and complicating inheritance matters.

Juan stressed that New Youth Housing 3.0 features three key 'braking mechanisms':

- Age limit (under 50 years old, and age plus loan term not exceeding 80 years) - Income limit (individual annual income under NT$2 million) - Price limit (NT$35 million in Taipei City, NT$25 million in New Taipei and Hsinchu, and NT$20 million in other areas)

'Coupled with the central bank's existing credit controls, which have not been relaxed,' Juan emphasized, 'this will be the most critical stabilizing force.' Furthermore, the Ministry of Finance will continue to conduct big data cross-checks with the Ministry of the Interior and household registration agencies to strictly crack down on 'straw buyers' and 'illegal subleasing.' He reiterated that the policy's purpose is to help young people secure self-occupied homes at reasonable costs, and government subsidies must never be diverted to investment or commercial use.