Taiwan housing market sentiment improves ahead of Central Bank meeting

Recent surveys from CTBC Real Estate indicate a shift in sentiment within the Taiwan housing market. Approximately 49.8% of respondents believe it is suitable to purchase property within the next two years, a significant increase from the previous quarter's 40.1%. Regarding price trends, 28.1% expect prices to rise in the coming quarter, while 64.1% anticipate prices will remain stable.

Market attention is currently focused on the upcoming Central Bank Board of Directors meeting on September 17. Key areas of interest include potential adjustments to interest rates and credit controls. Approximately 58.2% of respondents favor some form of easing in credit controls, with 41.2% specifically calling for moderate relaxation for first-time buyers and residents.

Analysts warn that if the Central Bank raises interest rates by 0.25 percentage points, mortgage holders could see monthly payments increase by approximately 1,300 TWD for every 10 million TWD borrowed. Such a move could increase the financial burden on homeowners and potentially dampen market momentum by causing prospective buyers to delay their decisions.