Mortgage restrictions hit the foreclosure market, with total auction sales falling below 7 billion yuan for eight consecutive quarters

In recent years, the mortgage default rate has been low, and fewer items have been subject to foreclosure. (Photo by reporter Xu Yiping)

[Reporter Xu Yiping/Taipei Report] The foreclosure market, which has always been regarded as a counter-indicator of the housing market, has actually been deeply affected by the housing loan restriction policy. Especially in the third quarter of 2025, when housing loans are most severe, the total number of real estate auctions nationwide in a single quarter The amount was only 3.542 billion yuan, a new low since statistics were released in the first quarter of 2009. Starting from the fourth quarter of 2021, as of the second quarter of this year, the total amount of single-season auctions for 19 seasons was less than 10 billion yuan.

Zeng Jingde, project manager of the Xinyi Housing Real Estate Enterprise Research Office, said that in recent years, the default rate of mortgage loans has been low, and fewer items have entered the foreclosure auction. In addition, unlike the purchase of a house, there is no time to transfer the ownership and apply for a mortgage loan after the foreclosure sale is finalized. The entire amount needs to be paid in a short period of time, so there are not many banks that can handle the auction. Later, when market funds are tight, it will also make it more difficult for participating people to allocate funds.

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According to the latest release from the real estate information platform of the Ministry of Interior, the total amount of real estate auctions nationwide in the second quarter was approximately 5.408 billion yuan, a quarter-to-quarter decrease of approximately 19.67%, and a single-quarter decrease of approximately 1.324 billion yuan. However, compared with the same period last year, the annual increase was more than 30%, with an increase of approximately 3%. 1.98%. Real estate industry players pointed out that 2025 can be said to be the most severe year for applying for mortgage loans. It was not until September 1 last year that the Financial Supervisory Commission announced that Qingan 2.0 was excluded from the limit of Article 72-2 of the "Banking Law", which slightly alleviated the pain of mortgage traffic jams.

The total amount of foreclosed real estate auctions across the country has been recorded since statistics began. The highest total amount of auctions in a single quarter was in the third quarter of 2009, reaching 24.058 billion yuan. The previous year was hit by the financial tsunami. However, if we look closely at the 10-year period from the second quarter of 2017 to the second quarter of 2026, there are only a few quarters where the total amount exceeded 10 billion yuan, including the first quarter of 2019 and the third quarter of 2021. On the other hand, from the third quarter of 2024 to the second quarter of 2026, the total amount of single-quarter real estate auctions for eight consecutive quarters was less than 7 billion yuan.

For 8 consecutive seasons, the total amount of foreclosures in a single season is less than 7 billion yuan

He Shichang, CEO of Xinchuan Real Estate Think Tank, pointed out that the total amount of auctions in the foreclosure market has hit a low. In addition to the low default rate of mortgage loans and the limited amount of good goods flowing into the foreclosure market, it is also the difficulty in obtaining mortgages, the narrowing of the gap between foreclosure prices and market prices, and the conservative view of the housing market boom. Many reasons have caused the public's willingness to bid to decline.

Huang Shuwei, director of the real estate owner representative service department of Colliers International, said that although the amount of the foreclosed house auction is one of the observation indicators of the housing market boom, after the auction is announced, it is necessary to pay attention to the conditions and the price of the object before there is a chance to auction it, so whether it is from the process time, market environment or From the perspective of willingness to bear, even if the housing market has experienced a two-year downturn, if there are still opportunities for refinancing and resale, it will be difficult for the foreclosure market to keep up with market changes. Especially at present, the market is oversupplied. If the foreclosure price lacks incentives to enter the market, the pressure of revaluation and price reduction will not be small.

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