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The housing prices of the four major housing price indices in Taiwan continue to hit record highs. The "New Youth Security" loan (preferential loan for new youth to start a family and buy a house) launched by the Democratic Progressive Party authorities has caused many chaos. In the first half of this year, the increase in the balance of mortgage loans of Taiwan banks reached 500.399 billion yuan (New Taiwan dollars, the same below), which is 76% of the new mortgage loans in the whole of last year. Bank mortgage loans are close to full water level. The market has heard that the largest "loan restriction order" in history has come, and it is even reported that the Taiwan "Central Bank" will further implement total control on civil engineering financing and mortgage loans. The housing market is hot, but people are "difficult to get a loan" and cannot get a loan to buy a house. Kuomintang legislator Li Yanxiu criticized that the "New Youth Security" not only speculated on house prices, but also caused the bank loan level to rise, which triggered the Taiwan "Central Bank" to issue a "loan restriction order". As a result, some people who live in the house have no way to get a loan, and the Taiwan housing market is in chaos.

Taiwan leader Lai Ching-te sang "Supporting Youth Housing" during his campaign in August last year. Since the "New Youth Housing" loan project was launched on August 1 last year, a total of 57,980 beneficiaries have been approved for loans by the end of May 2024, with a total loan amount of approximately 428.1 billion yuan. It continues to increase by nearly 50 billion yuan every month, which has also fueled another wave of tail-end market in Taiwan's housing market. However, according to the analysis of Taiwan's real estate trend expert Li Tongrong, the real benefit evaluation of the "New Youth Housing" benefits three types of people, including builders clearing out their remaining houses, sellers earning an extra 10% profit, and investors who buy and sublet. But there is also a type of people who suffer greatly from it, that is, young people.

Li Tongrong believes that young people in Taiwan who have not bought a house can only sigh at the sight of it, while those who have bought a house have to spend more than 500,000 yuan to absorb the raised housing prices in order to receive a subsidy of less than 100,000 yuan, which means that all young people, whether they have bought a house or not, have become victims.

Li Yanxiu also pointed out that the DPP authorities launched the "New Youth Security" loan for short-term speculation in order to win the election last year, which was described by the media as "new youth amphetamine". Not only did it cause chaos, it also completely undermined the Taiwan authorities' cross-departmental efforts to combat housing, and it also laid the mine for a "perfect storm" in the future housing market.

Li Yanxiu mentioned that Yang Jinlong, president of Taiwan's "Central Bank", publicly stated in a public opinion institution in Taiwan in June this year that "the atmosphere in the housing market was originally going down, but now it is going up again. It cannot be discussed unless it is an official policy." Last month, Taiwan's "Central Bank" issued the largest "loan restriction order" in history. Not only did it invite 34 banks to "have coffee" within 10 days, it also required them to submit reports within a deadline. It was like issuing 34 gold medals, requiring a cooling of the housing market.

Li Yanxiu said that this move also caused people who really needed mortgage loans to have no way to get loans, and people were complaining. Taiwan's financial authority, the Financial Supervisory Commission, yesterday (21st) launched an investigation to investigate whether the eight major banks and all banks had "loan restrictions".

Li Yanxiu pointed out that the Lai Qingde administration has added another "policy chaos". In order to avoid financial bubbles, Taiwan's "Central Bank" requires total volume control and reduces the level of real estate loans. However, the Taiwan authorities' financial department and the "Financial Supervisory Commission" do not want to cause public resentment because of the "loan restriction order". The three "ministries and commissions" are fighting each other, and the banks caught in the middle are like a daughter-in-law and a mother-in-law.

Li Yanxiu criticized that from the "energy chaos" and "cross-strait chaos" to the current "mortgage chaos", the various "ministries and commissions" of the Taiwan authorities, the Taiwan leader's office and the Taiwan administrative agencies "each have their own horn and sing their own tune", rushing around like a "headless fly", performing soap opera codes of "right hand slapping left cheek" every day, and in the end it is the rights and interests of Taiwan's 23 million people that are sacrificed.

(Lin Jingxian, Strait Herald reporter in Taiwan)