Permits for new office space construction totaled 612,000 ping (2 million square meters) in the first half of this year, up 91 percent from a year earlier, as demand for upscale offices remained strong, Shining Building Business Co (鄉林建設) said yesterday.
The growth, which occurred despite new policies unfavorable to building projects, could be attributed to companies that relocated operations from abroad, and to a lack of upscale office spaces in popular locations, the Taichung-based developer said.
In Taipei, permits for new office space construction reached 314,000 ping in the first six months, which not only expanded by 7.6 times from a year earlier, but outperformed new residential spaces whose combined areas total 251,000 ping, Shining Building said, citing government data.
It is the first time in 10 years that the areas of planned office spaces exceeded those of residential spaces, the company said, adding that developers had shifted their focus to commercial properties.
Strong demand for Grade A offices are behind the rise in Taipei’s prime districts, despite COVID-19 infections and economic uncertainty, it said.
Monthly rents in the Taipei 101 skyscraper climbed to more than NT$5,000 per ping and rose to more than NT$4,200 at the nearby Taipei Nan Shan Plaza office tower.
Vacancies hit record lows in the city’s Xinyi (信義), Daan (大安), Neihu (內湖) and Nangan (南港) districts, prompting potential tenants to look elsewhere in the city, it said.
Shining, which owns unsold mixed-use complexes in Shihlin District (士林) near the National Palace Museum, said that inquiries increased 30 percent recently.
The areas of residential spaces nationwide with building permits stagnated at 3.64 million ping, while that of warehousing and logistics facilities grew to 1.35 million ping, Shining said.
Unfavorable lending and tax terms intended to curb property speculation should not affect urban renewal or industrial development projects, Shining Building said.
Taipei and Kaohsiung had seen permits for commercial and industrial projects nearly double, it added.
UNCERTAINTY: Innolux activated a stringent supply chain management mechanism, as it did during the COVID-19 pandemic, to ensure optimal inventory levels for customers Flat-panel display makers AUO Corp (友達) and Innolux Corp (群創) yesterday said that about 12 to 20 percent of their display business is at risk of potential US tariffs and that they would relocate production or shipment destinations to mitigate the levies’ effects. US tariffs would have a direct impact of US$200 million on AUO’s revenue, company chairman Paul Peng (彭雙浪) told reporters on the sidelines of the Touch Taiwan trade show in Taipei yesterday. That would make up about 12 percent of the company’s overall revenue. To cope with the tariff uncertainty, AUO plans to allocate its production to manufacturing facilities in
TAKING STOCK: A Taiwanese cookware firm in Vietnam urged customers to assess inventory or place orders early so shipments can reach the US while tariffs are paused Taiwanese businesses in Vietnam are exploring alternatives after the White House imposed a 46 percent import duty on Vietnamese goods, following US President Donald Trump’s announcement of “reciprocal” tariffs on the US’ trading partners. Lo Shih-liang (羅世良), chairman of Brico Industry Co (裕茂工業), a Taiwanese company that manufactures cast iron cookware and stove components in Vietnam, said that more than 40 percent of his business was tied to the US market, describing the constant US policy shifts as an emotional roller coaster. “I work during the day and stay up all night watching the news. I’ve been following US news until 3am
Taiwan will prioritize the development of silicon photonics by taking advantage of its strength in the semiconductor industry to build another shield to protect the local economy, National Development Council (NDC) Minister Paul Liu (劉鏡清) said yesterday. Speaking at a meeting of the legislature’s Economics Committee, Liu said Taiwan already has the artificial intelligence (AI) industry as a shield, after the semiconductor industry, to safeguard the country, and is looking at new unique fields to build more economic shields. While Taiwan will further strengthen its existing shields, over the longer term, the country is determined to focus on such potential segments as
COLLABORATION: Given Taiwan’s key position in global supply chains, the US firm is discussing strategies with local partners and clients to deal with global uncertainties Advanced Micro Devices Inc (AMD) yesterday said it is meeting with local ecosystem partners, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), to discuss strategies, including long-term manufacturing, to navigate uncertainties such as US tariffs, as Taiwan occupies an important position in global supply chains. AMD chief executive officer Lisa Su (蘇姿丰) told reporters that Taiwan is an important part of the chip designer’s ecosystem and she is discussing with partners and customers in Taiwan to forge strong collaborations on different areas during this critical period. AMD has just become the first artificial-intelligence (AI) server chip customer of TSMC to utilize its advanced
RSS