Housing markets react to mortgage policy shifts in China and Taiwan

Recent changes to mortgage policies in China and Taiwan are impacting housing markets. In China, a new interest subsidy policy targeting first-time buyers has increased demand for smaller homes. In cities like Xinxiang, Henan, properties under 120 square meters have seen rapid sales as the 1% interest subsidy significantly reduces monthly mortgage payments for essential housing seekers.

In Taiwan, the Central Bank has increased the maximum loan-to-value ratio for a person's second home from 60% to 70%. This adjustment lowers the required down payment for a 10-million-TWD property from 4 million to 3 million TWD. Experts note that buyers who have already secured 60% loans may be able to re-apply for higher limits if the bank has not yet disbursed the funds, or potentially seek additional loans after two to three years.