Central Bank Housing Curbs Take Effect as Cathay Survey Shows Bullish Sentiment Easing

Taiwan’s central bank introduced a seventh round of selective credit controls in September 2024, tightening loan-to-value limits on property lending to curb investment demand. Cathay Financial Holdings’ monthly economic confidence survey tracks shifts in public expectations for home prices and the broader economy, making it a key gauge of the housing-market measures’ effectiveness.

Cathay Financial’s April survey showed a marked decline in expectations that home prices would continue rising. The share of respondents expecting prices to fall by more than 3% over the next six months climbed to 20%, the highest in nearly three years. The findings suggest the central bank’s seventh round of credit controls is gradually influencing market psychology and weakening bullish sentiment toward housing.