Limit for housing loans for youth raised to NT$8 mil.


CNA

TAIPEI — The limit for preferential housing loans for young people will be raised from the current NT$5 million (US$152,437) to NT$8 million starting Jan. 1, Finance Minister Chang Sheng-ford announced Thursday.

Chang said the government decided to introduce the raise because the current limit can no longer meet the demand of home buyers due to high housing prices in urban areas.

The loan program is designated for people aged 20 or above who do not own a home. The government estimates that 7,290 households will benefit from the raise next year.

Citing data from the third quarter of this year, Chang said that residential properties in Taipei cost NT$616,000 per ping (1 ping = 3.3 square meters) on average, with a home measuring 25 pings costing about NT$15.4 million.

In New Taipei, the average unit price of residential properties was NT$320,000 per ping in the third quarter, with a home measuring 25 pings costing NT$8 million, he said.

If home buyers are allowed to borrow up to 80 percent of the value of their homes, buyers in Taipei will need a limit of NT$12.32 million on average, while those in New Taipei will need NT$6.4 million, he added.

Data obtained from the eight government-invested banks show that since the loan program was launched Dec. 1, 2010, 35 percent of borrowers have borrowed more than NT$5 million, with the average amount borrowed being NT$8.15 million, according to Chang.