Breaking News, World News and Taiwan News.

Central Bank focuses on industrial land speculation

TAIPEI, Taiwan -- The Central Bank on Monday called upon eight banks to adopt stricter standards when crediting loans to projects collateralized on industrial lands, warning that premiums on industrial land have passed those of districts zoned for residential and business use.

The Central Bank held a meeting at which Bank of Taiwan (台灣銀行) and seven other local banks were asked to review their mortgage loans collateralized on industrial lands and switch to more austere standards while canvassing business projects using industrial lands as collateral.

Industrial land premiums have passed those of residence and business districts, posting a 4.17-percent jump over the six months to the end of September, while loan scale collateralized on industrial lands has soared 50 percent in the year to October, a Central Bank official told United Evening News. “ The bank has sensed that something unusual is going on,” the official said.

This is the Central Bank's first move along these lines and is meant to send a loud message about its attitudes toward industrial land premiums since the luxury housing tax was levied last year, inspiring market speculation that the government would expand the scope of the luxury tax's applicability.

The Executive Yuan last week passed amendments to the Specifically Selected Goods and Services Tax Act that, if passed by the Legislature, would help foster a healthier real estate market, provide fairer taxation, and promote long-term, stable economic growth, according to the Executive Yuan's statement.

To curtail speculation on industrial properties within non-urban areas, the list of goods subject to luxury taxes should be expanded to include "non-urban industrial land for which a construction permit may lawfully be issued," according to Article II of the amendments.

Write a Comment
CAPTCHA Code Image
Type in image code
Change the code
 Receive China Post promos
 Respond to this email
Subscribe  |   Advertise  |   RSS Feed  |   About Us  |   Career  |   Contact Us
Sitemap  |   Top Stories  |   Taiwan  |   China  |   Business  |   Asia  |   World  |   Sports  |   Life  |   Arts & Leisure  |   Health  |   Editorial  |   Commentary
Travel  |   Movies  |   TV Listings  |   Classifieds  |   Bookstore  |   Getting Around  |   Weather  |   Guide Post  |   Student Post  |   English Courses  |   Terms of Use  |   Sitemap
  chinapost search