Taiwan Real Estate Market Stagnates; Construction Loans Decline for Second Month

Central News Agency, Taipei, May 25. The Central Bank of Taiwan announced today that the mortgage balance for April reached NT$11.72 trillion, a new historical high, but the growth rate remains low. The construction loan balance, often seen as a 'barometer for developer confidence,' fell to NT$3.46 trillion, marking a second consecutive monthly decline. Central Bank officials stated that the real estate market remains in a consolidation phase, with developers maintaining a cautious wait-and-see approach. Statistics show that the April mortgage balance increased by NT$47.4 billion month-on-month, a 4.5% year-on-year growth, marking the sixth consecutive month of growth below 5%. Looking back, construction loan growth was as high as 18% in early 2021, but government cooling measures have significantly slowed this momentum. However, commercial and industrial real estate remains active, driven by the AI high-tech industry, providing some support to the market.