Central Bank President Yang Jinlong went to the Finance Committee of the Legislative Yuan to give a business report today. Kuomintang legislator Zeng Mingzong questioned the central bank’s views on the current housing market and whether it might introduce the fifth wave of selective credit control. The central bank’s September board of supervisors meeting did not introduce the fifth wave of selective credit control. Yang Jinlong said today that the housing market has signs of downward revision, and “it would be best if we can make a soft landing.”
Yang Jinlong said that according to the central bank’s data and media information, the current market situation is that the buyers are conservative and the sellers are also conservative. “The housing market seems to have signs of downward revision.”
The central bank’s written report further explained the current situation of the housing market. With the implementation of the measures to improve the real estate market by various government ministries, coupled with the impact of the epidemic, the housing market transactions have slowed down this year. In addition, the central bank’s tightening monetary policy since March this year has also Help strengthen the effectiveness of selective credit control measures.
Zeng Mingzong asked whether there will be a fifth wave of housing market control measures since the transaction volume of the housing market is declining and prices have not soared.
Yang Jinlong replied that it would be best if the housing market can land softly, but the central bank will still keep an eye on market dynamics, and the board of supervisors will also reassess in December.
Yang Jinlong added that one of the central bank’s responsibilities stipulated in the Central Bank Law is to promote financial stability, and does not set housing prices as a target; housing prices are related to financial stability. There is indeed speculation in the housing market recently, and the central bank must deal with the speculation, but if housing prices are really Supported by demand and fundamentals, the central bank will not insist on suppressing housing prices without affecting financial stability.
When Minister of the Interior Xu Guoyong participated in real estate-related activities a few days ago, he said that “real estate-related industries are the lifeblood of Taiwan’s economy and the real locomotive”, which caused heated discussions. Today, a legislator asked Yang Jinlong whether he agreed with Xu Guoyong’s statement; Yang Jinlong said that he did not know the actual content of the conversation and was inconvenient to comment.
However, Yang Jinlong said that real estate used to be a locomotive, but now the industry is very widely distributed. For example, the semiconductor industry has its place in the world and is also known as the mountains of protecting the country.
(Editor-in-Chief: Zhuang Yanyu)
