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Taiwan Construction Stocks Surge as Central Bank Eases Real Estate Credit Controls
Consumer Durables · Homebuilding · economic_daily · 2026-09-18
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Taiwan's construction sector rallied after the central bank raised the loan-to-value ratio for second homes to 70% and removed strict construction deadlines for land loans.
What Happened
Policy Easing Measures: The Central Bank of Taiwan has relaxed real estate credit controls, increasing the loan-to-value ratio for second-home mortgages from 60% to 70% and removing the requirement for developers to begin construction within a fixed timeframe. This policy shift triggered a strong rally in construction stocks, with companies like Xinbaba hitting the daily limit.
Relief for Developers: The construction industry has faced significant headwinds due to government cooling measures, rising material costs, and labor shortages. Industry leaders welcomed the removal of the construction deadline, noting that it better aligns with the practical realities of long-term urban renewal and land development projects.
Market Sentiment: Analysts suggest that the sector had already priced in significant pessimism, making the policy pivot a catalyst for a strong rebound. While immediate financial results may not change overnight, the easing is expected to support long-term sales and inventory clearance.
Outlook and Analysis: Real estate experts believe the move will benefit asset-rich buyers, potentially driving prices higher in prime locations like Taipei and Zhubei. The long-term impact on the sector will depend on whether these measures successfully stimulate sustained market demand and developer confidence.