In response to the government's recent strong push for the amendment of the "Three Laws on Housing," Lai Zhengyi, chairman of Xianglin ( 5531-TW) Group, stated today (11th) that promoting housing justice should not come at the expense of suppressing the industry. The current regulatory direction poses significant challenges not only to the operational models and capital utilization of the real estate development industry but may also lead to skyrocketing rents and the transfer of housing costs due to market mechanisms being obstructed.

Lai Zhengyi also urged the government to engage in substantive communication with the industry. As the normalization of dangerous old buildings and urban renewal becomes more common, more pragmatic supporting measures and administrative flexibility should be provided.

Lai Zhengyi analyzed the government's regulatory changes regarding "dangerous old buildings and urban renewal," highlighting key points such as "restricting small site volume bonuses," "limitations on residential usage ratios (must reach above 1/2)," and "new tax incentives for cooperative construction agreements (40% reduction in land value increment tax / deed tax)." He emphasized the promotion of extending the lifespan and reinforcement of old houses, striving to complete the legislative amendments by May 31, 2027, and plans to remove the deadline for 2027, which he believes has "dual significance of short-term decline and long-term growth."

Lai Zhengyi affirmed that the government's cancellation of the deadline can prevent the past chaos of developers rushing to register for volume bonuses. The cancellation of volume bonuses for small sites can allow large site developments to return to rationality, benefiting urban disaster prevention capabilities and aesthetics.

He also issued a warning that current construction material costs remain at historical highs. If volume bonuses do not adjust dynamically with price levels, relying solely on the removal of the deadline may struggle to attract landowners to participate. Especially in regions like central and southern Taiwan, where development costs are more sensitive, if the government cannot provide stable tax incentives and administrative efficiency compensation, the so-called normalization of regulations may become mere rhetoric. Additionally, he expressed concerns about the government's strong push for "self-initiated urban renewal," believing that landowners lack integration expertise and that the government should simplify the review process for "public-private partnerships" rather than focusing solely on subsidizing self-initiated urban renewal.

Regarding the amendments to the "Rental Law" and "Housing Law," Lai Zhengyi pointed out that some regulations may pose risks of "distorting market mechanisms." He noted that if regulations force a guaranteed three-year lease term or strictly limit rent increases, landlords may significantly raise rents at the initial signing to compensate for anticipated costs and future risks, leading to "one-time rent surges," which is not beneficial for renters.

Lai Zhengyi stated that excessive rental controls would reduce the incentive for enterprises to invest in "long-term rental apartments" or "branded rentals," hindering developers' transformation and market upgrading. Furthermore, regarding the "Housing Law," which will focus on "renting only, not selling," along with rental subsidies and property management, it is proposed to amend the law to specify that social housing should provide at least 40% to disadvantaged groups and at least 20% to newly married families within two years or families with minor children.

He believes that declining birth rates are a societal issue, citing that only 6,523 births were recorded in February this year, a new low for any month in history, a year-on-year decrease of 37.32%, marking 62 consecutive months of "living worse than death." This is related to population policy, and the government should not shift all social responsibilities onto developers cooperating in building social housing, especially given the high costs of land acquisition. If developers are further burdened with excessive fees or donation ratios, these hidden costs will ultimately be passed on to housing prices, creating a vicious cycle Regarding the overall economic environment, Lai Zhengyi lamented that the housing market is currently facing the seventh wave of credit controls and restrictions on construction financing, coupled with various limitations from the three housing laws, the real estate industry has indeed entered a "cold winter." He cited that this year, the volume of 329 project cases has already seen an astonishing year-on-year decline of 33%. If developers completely withdraw due to high-pressure policies, the downstream industries such as building materials, interior design, home renovation, and even financial loans will all be impacted