Taiwan housing loans hit 11% in August ’24

Taiwan’s housing market saw a surge in the second half of 2023, with housing loan growth reaching 11 per cent in August, the highest since May 2006, as per a statement published by the central bank on Thursday.

Construction loans also saw an uptick, with a growth rate of 5 per cent by the end of August. The ratio of real estate lending to total lending for all banks remained high at 37.5 per cent by the end of August, close to its historical peak of 37.9 per cent.

Noteworthy, the bank has made six adjustments to its credit control measures since December 2020 to better manage risks in real estate lending. The nonperforming loan ratio for real estate loans has stayed low, demonstrating robust credit quality.

Attribution: Taiwan’s central bank report

Subediting: M. S. Salama