Premier Chang San-cheng said that housing prices should go back to normal after buildings are reinforced. The premier was referring to the effect on real estate prices that the recent revelation of areas prone to soil liquefaction may have.
On Monday, the government released a public database showing areas that may be prone to soil liquefaction, which could make homes prone to damage during a major earthquake. The premier said he knows that this information is sensitive but it is necessary for the public to know these facts.
The premier also explained how interest rates might vary due to this data. Chang said, "I think the spirit is to have different mortgage rates. In areas with better soil, there may be a good deal on mortgages whereas risky areas may have more strict mortgages. That’s the basic spirit and relevant measures are being discussed."
Soil liquefaction occurs when an earthquake affects the strength of the soil which in turn behaves like liquid. Liquefaction has been seen as a factor causing serious damage following powerful earthquakes around the world.