SLUGGISH:As the real-estate market slows, the central bank has taken moves to avoid liquidity risks by easing credit controls. However, analysts fear it may not be enough
Date: , Aug 17, 2015
By: Crystal Hsu / Staff reporter
The central bank’s partial easing of housing loan restrictions might help the property market to avoid a hard landing as liquidity risks build up amid sluggish transactions, analysts said yesterday.
“The partial relaxation is a measured move to take some pressure from the housing market that is heading increasingly toward collapse due to excessive supply, but sluggish transactions,” Tamkang University professor of industrial economics Chuang Meng-han (莊孟翰) said.
The monetary policymaker on Thursday removed Taoyuan and New Taipei City’s Yingge (鶯歌) and Bali (八里) districts from the restriction list that limits mortgage loans to 60 percent for second homes without a grace period. [FULL STORY]