Mortgages extended by domestic banks last month increased NT$70.25 billion (US$2.52 billion) from September, while construction loans increased by NT$23.95 billion, data released on Thursday by the central bank showed.
The monthly increases were higher than September’s increases of NT$60.96 billion in mortgages and NT$19.21 billion in construction loans.
It was also the largest monthly growth for mortgages since July, as people resumed buying houses after the easing of a COVID-19 outbreak that started in May. Housing transactions also picked up speed after Ghost Month, which this year took place from Aug. 8 to Sept. 6.
Photo: I-Hwa Cheng, Bloomberg
The central bank data showed that mortgages and construction loans have increased every month this year, pushing their outstanding balances to historic highs of NT$8.61 trillion and NT$2.73 trillion respectively last month.
However, their annual growth has gradually slowed, an indication that the central bank’s selective credit control measures for the market might be working, the Chinese-language Liberty Times (sister paper of the Taipei Times) reported on Friday, quoting central bank officials.
Last month, mortgages increased 9.37 percent year-on-year, down 0.01 percentage points from September and the fourth consecutive monthly drop, while construction loans increased 15.25 percent, the smallest expansion since July last year, the data showed.
Since March last year, the central bank has implemented several measures to rein in rising housing prices, such as increasing the cost and limiting the source of funds for property buyers through loan-to-value ratio caps, while the central bank and the Financial Supervisory Commission have conducted special inspections of domestic banks to determine whether they are exercising solid risk management on real-estate lending.
However, it remains to be seen whether the downward trend in the annual growth of mortgages and construction loans is to continue, as housing sales appear to remain robust and the market is entering its peak season, central bank officials said.
DISMAL OUTLOOK: A Citigroup analyst predicted firms face ‘the worst semiconductor downturn in at least a decade,’ due to inventory build and the potential of a recession Semiconductor stocks tumbled after Micron Technology Inc became the latest chipmaker to warn about slowing demand, triggering concern that the industry is heading into a painful downturn. In the US on Tuesday, the Philadelphia semiconductor index sank 4.6 percent, with all 30 members in the red, its biggest drop in about two months. In Asia, chip stocks from Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to Samsung Electronics Co, SK Hynix Inc and Tokyo Electron Ltd slumped. Investors are growing increasingly skittish as the notoriously cyclical industry is hurtling toward a prolonged slump after years of widespread shortages that led to heavy
With a tantalizing array of satay chicken, wok-fried mud crab and chilled tiger prawns, the dinner buffet at Singapore’s Grand Hyatt hotel typically sets diners back about US$70. Those on a tighter budget and with an eye on sustainability can fill a box for one-tenth of that price. Across Asia, tech start-ups are taking food otherwise destined for landfill and providing discounted meals through mobile phone apps. About one-third of food is lost or wasted every year globally, and the mountains of waste are estimated to cause 8 to 10 percent of greenhouse gas emissions such as methane, the UN says.
MAJOR REVENUE CONTRIBUTOR: The company said that it expects revenue this year to increase annually due to an improved smart consumer electronics outlook Hon Hai Precision Industry Co (鴻海精密) yesterday said revenue this quarter would be flat from last quarter, despite new phone models launched by key customers, as the market faces weakening demand. The iPhone assembler, based in New Taipei City’s Tucheng District (土城), said it is cautious about its business outlook, given mounting uncertainty regarding geopolitical tensions, soaring inflation and COVID-19 flare-ups, but still expects revenue this quarter to be higher than the NT$1.4 trillion (US$46.67 billion) it reported a year earlier. The forecast came as the company posted record second-quarter net profit of NT$33.29 billion, up 12 percent year-on-year from NT$29.78 billion.
Yageo Corp (國巨) yesterday said that its revenue would drop by a low single-digit percentage this quarter from a historical high last quarter, as customers and distributors are holding back demand to concentrate on inventory digestion due to flagging smartphone and notebook computer demand. The world’s biggest supplier of passive components expects to take three to six months to reduce its inventory of commoditized passive components to a normal level of 100 to 110 days, from 130 days currently. Yageo would reduce its factory utilization rate for standard passive components to about 60 percent this quarter, from about 70 percent last quarter,