Central bank escalates housing price suppression measures
By Ted Chen, The China Post
July 22, 2014, 12:02 am TWN
TAIPEI, Taiwan -- The central bank yesterday announced that in order to suppress rampantly rising housing prices, mortgages for individuals currently with three properties under their name will be limited to 50 percent of the purchase price.
In addition, the central bank also stated that the maximum mortgage amounts will be adjusted to 50 percent for corporations in an effort to prevent business proprietors from hoarding housing properties under the capacity of their companies.
Most notably, the central bank cited statistics deliberated by its board of directors during last month's quarterly meeting, with commentators deeming the act a gesture of the regulator's resolve in cooling the housing market.
Previously, the central bank had lowered the threshold price range for homes deemed to be luxury properties, and vastly expanded the number of regional housing markets under regulatory monitoring, including four administrative districts in New Taipei City and Taoyuan County. The central bank yesterday also explained that several hot areas such as Kaohsiung's museum district and Taichung's seventh and eighth redevelopment zones (台中七期, 八期重劃區) were excluded from heightened monitoring due to the difficulty in gauging jurisdiction as they may not be clearly defined by governmental administrative districts.
Forex not for Sovereign Wealth Funds: CB
Meanwhile, in response to calls for the central bank to establish Taiwan's own sovereign wealth funds (SWF) amid reports of transaction fees fraud committed by public fund managers, the regulator responded that although not officially designated as SWF, Taiwan's public retirement funds currently function as SWFs.