Property prices in Taiwan have been surging since last year. Now, Taiwan's authorities have introduced strict checks on banks who lend to speculators.

According to the United Daily News in Taiwan, the financial regulator is currently carrying out checks on at least 8 private and state-owned banks. It is looking to find out whether the banks have been working within regulations aimed at limiting property speculation.

Just over a month ago, Taiwan's financial regulator requested lenders to raise down payments and interest rates for mortgages on luxury properties, and to cancel the grace period of the loans. House prices in Taiwan rose by 17 percent in 2009, the highest increase over the last 10 years.