| dc.description.abstract | In this study, I collect 15,542 housing-price registrations in the three major readjustment areas (i.e.,Yiwen , Zhonglu, and the Bade expanded areas) of Taoyuan City so as to investigate the impact of the latest selective credit controls on housing prices. The sample of this study covers property transactions from Jan 2018 to Dec 2022, in between the selective credit controls were implemented by the Central Bank in Dec 2021. Details regarding the latest credit controls are: for legal entities and natural persons who purchase to own their third residential property, the maximum loan-to-value ratio is reduced to 40%, which was effective immediately. A hedonic housing price model is employed in this study, where I conduct multiple regression analyses by using the ordinary least square method while controlling foe the annual fixed effect. I also differentiate the policy impacts for if properties are for residential uses. The empirical results are as follows. First, when I only control for the annual fixed effects, the latest credit control policy appears to further push up housing prices in the three readjustment areas. However, after also controlling for the interaction effects between the policy and the “residential” uses of properties, I find the latest credit control policy significantly suppresses housing prices in three major rezones in general. In addition, after conducting respective regressions on three major rezones, it shows that the latest credit controls mainly suppress housing prices with “residential use” in two areas, i.e., Yiwen and Bade rezoning areas only. Specifically, in the Yiwen area, the central bank′s latest credit controls mainly suppress the prices of “condominium” most, and then to those of “town house”, followed by those of “high-rise residential building”. Similarly, in the Bade rezoning area, the latest policy suppresses the prices of “condominium” to the greatest magnitude, while also negatively affect the prices of “high-rise residential building”, followed by those of “town house”. In conclusion, this study indicates that the latest credit controls exhibit different impacts on specific types of building in the three readjustment areas in Taoyuan City. This may due to inherent regional references, or simply because the latest policy has only been in place for about a year and thus the policy impacts are yet to be observed. This study also implies that although the Central Bank has implemented several arounds of credit controls, its policy impacts on housing prices are not as definite as expected. Therefore, other polices, such as an adjustment on mortgage rates, may also be considered to enhance the affordability of property prices in Taiwan. | en_US |