Dead people, cheaper homes: Taiwan’s housing crisis has buyers knocking on haunted doors

Rising property prices in Taiwan are driving a growing number of buyers towards homes with troubled histories, as they look for more affordable ways to enter the housing market.

Known as Xiong Zhai in Mandarin, these so-called “haunted houses” or “murder homes” are properties where a previous occupant died in violent or otherwise disturbing circumstances.

Violent deaths can mean steep discounts

The Times reported that the more violent the death associated with a property, the lower its asking price tends to be, with some homes selling for as little as half their market value.


The trend comes as Taiwan’s economy continues to expand. The economy grew 14 per cent in the first half of 2026, driven largely by the island’s AI and semiconductor industries.

But the economic boom has not translated into affordable housing for everyone, prompting some buyers to consider properties carrying a strong social stigma.

Banks wary of financing ‘haunted’ properties

The discounts, however, can come with their own challenges. Banks are often reluctant to lend against such homes because they could struggle to recover their money if a borrower defaults, given how difficult these properties can be to resell.

“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.

Ghost month and Taiwan’s spiritual traditions

The hesitation highlights the continued influence of spiritual traditions in Taiwan, even as the island remains a global 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.

Buyers perform ceremonies before moving in

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.