Three Major Anti-Wealth Clauses of Qingan 3.0 Revealed: Ministry of Finance Assures No House Price Inflation

The Executive Yuan approved the 'Youth Housing Loan for Homeownership' (commonly known as 'Qingan 3.0') today, offering low-interest preferential mortgages of up to NT$15 million for married families with children under the age of 50. Vice Minister of Finance Juan Qinghua stated that 'Qingan 2.0' was launched on August 1, 2023, coinciding with TSMC's southern plant construction, which triggered a nationwide housing price surge from the south. At that time, 'Qingan 2.0' became the 'scapegoat' for rising prices. However, the current market environment is different: transaction volumes have declined, prices are stable, and in some areas, prices have even dropped. Therefore, the likelihood of 'Qingan 3.0' driving up housing prices is relatively low.

Qingan 3.0 Finalized: Maximum Loan Amount Raised to NT$15 Million

Today's Executive Yuan meeting approved the Ministry of Finance's 'Youth Housing Loan 3.0 Plan,' another tax subsidy measure to encourage marriage and child-rearing, following property and house tax reductions for marriage and parenting households. 'Qingan 3.0' will officially launch on August 1 this year. In addition to the existing NT$10 million loan ceiling under the original Qingan program, newlywed families within two years of marriage will see their loan limit raised to NT$12 million, while married families with minor children will have their loan limit under the new Qingan 3.0 increased to NT$15 million.

In recent years, Taiwan's stock market has repeatedly hit record highs, but the wealth effect has not spilled over into the real estate market. Additionally, the Central Bank's credit controls on mortgages in certain areas remain in place, leading to continuous complaints from developers. Given that the DPP government introduced 'Qingan 2.0' before the 2023 presidential election, further fueling nationwide housing price increases, there is close public scrutiny on whether 'Qingan 3.0' will trigger a similar capital overflow effect.

Will Qingan 3.0 Repeat the House Price Surge of Qingan 2.0?

In response, Juan Qinghua emphasized that the market conditions surrounding the launch of 'Qingan 3.0' differ significantly from those of 'Qingan 2.0.' The rollout of 'Qingan 2.0' coincided with a semiconductor manufacturer (TSMC) establishing a plant in southern Taiwan, causing housing prices to surge from the south upward. The timing of 'Qingan 2.0' aligned with a rising market phase, making it an easy scapegoat for price increases.

Juan stated that the current real estate market is experiencing reduced transaction volume and stable prices, with some areas even seeing price declines—unlike the situation in 2023. Furthermore, the Ministry of the Interior, the regulatory authority for the housing market, has made thorough preparations to prevent disorderly practices such as straw buyer schemes, and relevant data will be consolidated and strictly investigated by local governments. 'Qingan 3.0 has age limits, income limits, and property price limits,' he stressed, making it relatively unlikely to drive up housing prices.

Under Qingan 3.0, applicants must be under 50 years old, and the sum of the applicant's age and loan term must not exceed 80 years. The applicant's annual personal income must not exceed NT$2 million. Property price caps are also set for different regions. The new program will run for six years and will take effect on August 1.

Moreover, the Central Bank's seventh round of real estate lending controls remains in place. The primary purpose of Qingan 3.0 is to assist young people without homes in purchasing owner-occupied housing, not to encourage speculative trading.