How rising house prices have forced Taiwan to settle for ‘haunted homes’

The trend comes as Taiwan's economy continues to grow, expanding by 14 per cent in the first half of 2026, driven by the island's AI and semiconductor industries (Photo: Reuters).Property prices in Taiwan have seen a significant rise, forcing a growing number of buyers to turn towards homes with troubled pasts to find an affordable way to live. “Haunted houses” or “murder homes,” also known in Mandarin as Xiong Zhai, these properties are where a previous occupant died in violent or otherwise disturbing circumstances.The Times reported that the more violent the death, the lower the asking price tends to be, with some properties selling for as little as half the market rate.The trend comes as Taiwan's economy continues to grow, expanding by 14 per cent in the first half of 2026, driven by the island's AI and semiconductor industries. However, the economic boom has not made housing affordable for everyone, pushing some buyers towards properties that carry a social stigma.But the discounts come with difficulties. Banks are often reluctant to lend against such properties because they may struggle to recover their money if a borrower defaults, given the difficulty of reselling them.“People might see the property as inauspicious and believe it could affect their luck,” real estate agent Wu Kaiwen, told the Times, explaining the reluctance to finance such homes.The hesitation reflects Taiwan's continuing spiritual traditions despite its status as a technology hub.During “ghost month”, which runs until mid-September, people believe the gates of the underworld open and spirits return to earth. Some temples leave out food offerings during the period to appease them.Many buyers who choose a xiong zhai arrange ceremonies intended to release any lingering spirits from the property before moving in.Spiritual practitioners say such ceremonies are performed with the aim of helping a lingering spirit leave and cleansing the property so that negative energy associated with the death does not affect the new occupants.