Real Estate Agency: Rare 'Strong Stock, Weak Housing' Pattern in April; Mortgage Growth Only 4.5%

(Central News Agency reporter He Xiuling, Taipei 4th) H&B Business Group stated that the booming Taiwan stock market continues to attract capital inflows, while the real estate market's performance is relatively weak. Observing central bank data, securities margin deposit balances reached a record high of NT$4.3 trillion in April this year, an increase of over NT$1 trillion year-on-year, representing a growth rate of 33.5%. In contrast, although consumer housing loan balances reached NT$11.7 trillion in April, still at a historical high, the year-on-year increase was only NT$504.6 billion, with a growth rate of approximately 4.5%.

Lai Zhichang, Public Relations Assistant Manager of the Research and Planning Department at Great Home Realty, stated in a press release today that the stock market continues to hit new highs, attracting consumer investment. As for the real estate market, impacted by housing market control measures, the growth rate has clearly slowed, causing the previous 'stock-housing linkage effect' to disappear, instead presenting a rare 'strong stock, weak housing' pattern.

He explained that the securities margin deposit balance is the total amount of checking deposits, demand deposits, and savings deposits held in securities firms' own accounts, customer settlement accounts, and exchange settlement accounts. It is considered a 'retail investor confidence indicator'.

According to central bank statistics, the securities margin deposit balance in April rose to NT$4.3 trillion, continuing to set a new historical high. This was an increase of NT$374.2 billion from March (a monthly increase of 9.53%) and a significant increase of NT$1.0788 trillion compared to the same period last year (an annual increase of 33.5%).

In comparison, although the housing loan balance in April also continued to hit a new high of NT$11.7 trillion, the monthly increase was only NT$47.4 billion (a monthly increase of 0.4%). Compared to the same period last year, the increase was only NT$504.6 billion, an annual growth rate of about 4.5%.

Lai added that the booming stock market shows that the market is not short of funds, but these funds are not flowing into the real estate market. The main reason is the central bank's housing market control measures and bank lending restrictions, which block hot money. This has prevented the real estate market from experiencing the usual stock-housing linkage. Furthermore, due to the higher rate of return on stock market investments, property-owning groups may prefer to keep their funds in the stock market, thereby significantly slowing the overall growth rate of housing loan balances. (Editor: Zhai Sijia) 1150604