Taiwan's Outstanding Construction & Home Loans Hit Record High of NT$5.54 Trillion in September

Outstanding construction and home loans in Taiwan hit a record high of NT$5.54 trillion (US$184.67 billion) in September, an increase of NT$26.5 billion (US$883.33 million) over August. It was the largest monthly increase in 14 months, according to the Central Bank.

Construction loans showed the largest rise in September, increasing NT$7 billion (US$233.33 million) to NT$1.49 trillion (US$49.67 billion).

Outstanding preferential loans to young people purchasing first homes rose NT$9.65 billion (US$321.67 million) in September, to NT$316.5 billion (US$10.55 billion).

Insiders say that soaring prices of real estate in recent years have encouraged builders to promote construction projects vigorously, helping to boost construction and home loans.

Central Bank Governor F. N. Perng indicates that people with mortgages in Taiwan currently have to set aside an average of 30% of their monthly income to pay for their housing loans. For Taipei residents, the figure is an even higher 47%.

Among Taiwan's five big cities, four experienced a drop in the number of housing transactions in September. The exception was Taipei, which experienced a growth of 15%.