A senior insurance industry executive has suggested that insurers fund the construction of residential property on land granted by the government, in order to solve the housing needs of young Taiwanese.
Mr Hsu Shu-po, deputy chairman of Taiwan Life Insurance and deputy director of the General Chamber of Commerce of Republic of China, who made the suggestion, said that the government could rent out the completed housing units to young people for NT$10,000 ($327) to NT$15,000 a month, according to a report in United Daily News.
Suggesting that the insurance industry invest in social housing projects, he has proposed the idea to the Ministry of the Interior and the Financial Supervisory Commission.
Mr Hsu noted that Taipei's housing prices are 15.75 times the average household's annual disposable income, and while those in New Taipei City are 12.66 times.
His proposal is for at least NT$500bn to be raised initially from the insurance industry to build 80,000 social housing units to cater to young people and small families with needs. He said that the rental housing developments can be securitised, so that the insurance industry can also have certain investment benefits.
He said that for a long time, housing prices have been too high while salaries have remained too low. Young people complain that they cannot afford to buy a house. On the other hand, the insurance industry faces the problem of capital outflows because of investments abroad. Therefore, he proposed that the insurance industry invest in social housing.