Taiwan Central Bank Expected to Maintain Housing Credit Curbs, With Limited Easing Possible in Second Half

Taiwan’s central bank continues to use selective credit controls to curb home prices and banks’ lending risks, imposing restrictions on loans for multiple-home purchases, high-priced housing and corporate property acquisitions. Financial institutions say home-price indices remain elevated and banks’ real-estate loan exposure is still relatively concentrated. Policymakers must balance cooling the housing market against the risk of a sharp freeze in transactions, with the goal of engineering a soft landing.

Financial institutions expect the central bank to retain its current housing credit controls at its first-quarter 2026 board meeting rather than immediately pursue broad-based easing. Banks say the housing market has entered a period of consolidation, but the central bank is likely to keep assessing the measures until home prices and real-estate lending as a share of total credit fall clearly. Limited adjustments to some lending terms may come in the second half of 2026 at the earliest.