The government has launched measures to combat speculation in Taiwan’s recent housing prices. Officials have revealed that if these measures still fail to curb speculation, the Ministry of the Interior will play its last trump card by promoting the “approval system for the purchase of homes by private legal persons”. This means that specific home purchases must be reviewed by the government if necessary, and will not be approved except for a few uses.
Taiwan’s low interest rates and high rents have led to the inflow of capital into the real estate market, and property prices are getting higher and higher. Executive President Su Tseng-chang recently declared his determination to combat property speculation, and the Central Bank then offered “real estate credit control measures”. The company’s speculation to avoid taxes.
The National Development Council Chairman Gong Mingxin stressed that real estate should be used for residential purposes, rather than general investment speculation; after this wave of measures, if the speculation is not significantly restrained, the government will have more active measures to respond.
It is revealed that the next stage of Taiwan officials will amend the “average land rights regulations” to prohibit the transfer of pre-sale housing red list, is currently communicating with the legislature, will be reported to the Executive Yuan Council as soon as possible to deal with, in time for the Legislative Yuan before the end of the current session sent.
If the housing market does not cool down, the Ministry of the Interior will play its last trump card by promoting the “approval system for the purchase of homes by private legal persons”. The so-called “private legal person” refers to the general company, consortium legal person, association legal person, profit legal person, such as private schools, foundations, temples, guilds, chambers of commerce, etc., all belong to the category of private legal person.
The direction of the amendment is that the purchase of housing by private legal persons must comply with four major uses: first, long-term rental business, that is, no resale; second, urban renewal of dangerous old residential redevelopment; third, staff dormitory; fourth, other projects approved by the central authorities. It is regarded as Taiwan’s official “hand” to fight property speculation.
The government has included the “approval system for private individuals to purchase homes” as a medium and long-term measure, depending on the development of the market situation, and the relevant regulations will be prepared in advance. The Ministry of the Interior’s Undersecretary Hua Jingqun also said that the Ministry of the Interior will first make preparations, do not want to really use, if really necessary, the bill has also been discussed almost.
At present, Taiwan only for land-based acquisition of real estate, with the purchase of self-occupied residential property, limited to one family, restrictions on housing and other provisions. There has been no large-scale implementation of property purchase restrictions.
The deputy secretary general of the Chinese Economic and Financial Association, Zeng Zhichao, said that restricting the purchase of residential property by private legal persons is a rather serious measure, which is tantamount to depriving private rights, and it is questionable whether it is consistent with the purpose of fighting property speculation. He believes that there must be a reasonable basis for such a measure before it is introduced, otherwise it restricts the freedom of sale and contract, which is unconstitutional.
The government has launched a number of measures one after another, the Ministry of Finance has also been studying the hoarding tax, unless the implementation of these measures are ineffective, housing prices continue to soar, to offer a private legal person to restrict the purchase of residential policy, because in a free country under the rule of law, such measures will have the suspicion of distorting the market mechanism.
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