Taipei, March 9, 2010 (CENS)--Taiwan`s construction loans totaled US$31.88 billion at the end of January, exceeding US$31.25 billion for the second consecutive month, according to the statistics released by the central bank here.

Market observers attributed such growth in loans to the massive funds pumped into the real estate market by cash-rich life insurers, indicating that construction firms here seem to have regained confidence in the market earlier dampened by the global downturn.

In the second half of last year the monthly construction loans remained modest without exceeding US$31.25 billion until the end of December, with the trend changing due to obvious economic recovery believed to be heating up the real estate market on the island.

The central bank`s statistics also showed that the mortgage extended increased by US$515.13 million from a month earlier to hit a record high of US$153.75 billion at the end of January; however, the home retrofit loans shrank to US$24.67 billion, lower than US$25 billion for the third consecutive month.

(by Judy Li)