The commercial property market could see another boom after soaring 56 percent to NT$149.5 billion (US$5.26 billion) last year, driven by strong demand for industrial and office spaces, as well as government-backed urban renewal projects, Jones Lang LaSalle Inc (JLL) said on Tuesday.
Government-backed development projects near Taipei Railway Station, Taiwan Power Co’s (台電) former office in Taipei’s Nangang District (南港) and Kaohsiung’s “Asia New Bay Area” (亞洲新灣區) could hit NT$190 billion or higher this year, JLL Taiwan managing director Tony Chao (趙正義) told a news briefing in Taipei.
The tender offers are likely to draw close attention given limited land supply in popular locations across the nation, Chao said.
Photo: Hsu Yi-ping, Taipei Times
Commercial property deals could reach NT$100 billion this year, and land transactions could surpass NT$200 billion, he said.
Land deals, including superfices rights, amounted to NT$287.5 billion last year, JLL Taiwan said, adding that residential plots underpinned 56 percent, as developers aggressively built land inventories, notably in New Taipei City and Taichung.
Tainan also attracted heavy property funds after Taiwan Semiconductor Manufacturing Co (TSMC,台積電), the world’s largest contract chipmaker, announced plans to set up new plants in the area, JLL Taiwan said.
TSMC’s suppliers would soon follow suit and the cluster effect would spur demand for residential spaces, Chao said.
Some tech firms have teamed up with builders to develop residential complexes, and the market might see more such collaborations, he said.
In related news, vacancy rates for grade A offices in Taipei edged up 0.1 percent to 2.16 percent last quarter, while rents grew a fractional 0.6 percent, JLL Taiwan said.
The mild increase in vacancy rates came because some firms relocated to make way for other corporate tenants to earn rental income, JLL Taiwan said.
The office market remains tight, and companies with space to spare are leasing it to make money, the consultancy said.
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