TAIPEI (TVBS News) — The Ministry of the Interior (MOI, 內政部) reported on Friday (Feb. 7) that Taiwan's national housing price index, mortgage burden ratio, and price-to-income ratio have reached record highs in the third quarter of 2024. During that quarter, the housing price index hit 149.69, marking a 12.4% year-over-year increase and continuing an upward trend for 25 consecutive quarters.
The Mortgage Affordability Ratio soared to a historic high of 46.8%, indicating a "low" affordability level. The price-to-income ratio climbed to 10.82, suggesting that residents would need over a decade of savings to purchase a home. The ministry noted that the domestic economic growth rate was 4.17% in the same period, with steady growth indicated by the National Development Council's (NDC, 國發會) business indicators.
In response to the heated real estate market, the central bank urged banks to self-regulate real estate loan volumes starting in August 2024 and implemented the seventh wave of selective credit control measures in September, leading to a cooling in market transactions. Although housing prices rose across the six municipalities, growth rates tapered in five, with Kaohsiung City's quarterly growth rate dropping from 6.27% to 2.43%.
The rising mortgage burden stemmed from a 2.5% increase in median housing prices to NT$10.25 million, while median household disposable income slightly increased by 0.87% to NT$947,400. However, the average interest rate on new home loans from the top five banks reached 2.19%, offsetting some relief. Taipei's mortgage burden ratio of 71.82% and the price-to-income ratio of 16.6 underscore the severe challenges for homebuyers, contrasting with Keelung City's more manageable burden of 28.19%.
