Commercial property transactions in Taiwan increased 2.8 percent to NT$137 billion (US$4.46 billion) this year, mainly due to demand for offices and factories, but land deals tumbled 20.4 percent to a six-year low of NT128.4 billion due to unfavorable lending terms, Colliers International Taiwan (高力國際) said on Wednesday.
The property market would be stronger next year, as a monetary tightening cycle is likely over, giving firms more financial muscle to expand capacity and boost their real-estate holdings, the property broker said.
Self-occupancy demand for offices and factories contributed 53 percent of commercial property deals, or NT$73.2 billion, Colliers Taiwan senior research director Eilleen Liang (梁儀盈) told a news conference in Taipei, citing transaction data for the year to Monday.
Photo: Hsu Yi-ping, Taipei Times
A real-estate investment trust in June sold two office buildings in Taipei’s Songshan District (松山) for NT$2.98 billion and NT$2.45 billion, suggesting a premium of 1.1 percent and 5.3 percent respectively despite a sluggish economy, Liang said.
As for industrial property deals, a Hon Hai Precision Industry Co (鴻海精密) affiliate bought a factory complex in New Taipei City’s Tucheng District (土城) and Topco Scientific Co (崇越科技), a distributor of semiconductor materials, purchased an office building in Taipei’s Neihu District (內湖), Colliers Taiwan said.
Local insurers, normally the main commercial property players, failed to make the list of the top 10 deals this year, Colliers Taiwan managing director Andrew Liu (劉學龍) said, calling the situation rare.
Liu attributed the absence to a series of interest rate hikes that drove up the minimum yield requirement to 2.875 percent for real-estate investments by insurance companies.
Rising property prices make it difficult to pass the test in the first place, he added.
Land deals were weaker despite help from auctions of public plots of land in Taichung and Kaohsiung this quarter, Liu said.
“It was unusual to see no land deals in excess of NT$5 billion this year,” Liu said, adding that credit controls and other unfavorable measures were to blame.
Hung Yuan Development Co (宏園建設) and Ruicheng Construction Co (瑞誠建設) jointly bought a plot of land in Taipei’s Beitou District (北投) for NT$4.79 billion, making it the largest deal by value, Colliers Taiwan said.
Looking ahead, there is no reason not to be positive about the property market, Liu said.
The world is keen about the prospects for artificial intelligence, so Taiwanese firms in the supply chain would benefit and need more office space, Colliers Taiwan said.
Local insurers and developers also would boost their holdings once the US Federal Reserve lowers interest rates, it said, adding that inflation pressure appears to have been brought under control.
MULTIFACETED: A task force has analyzed possible scenarios and created responses to assist domestic industries in dealing with US tariffs, the economics minister said The Executive Yuan is tomorrow to announce countermeasures to US President Donald Trump’s planned reciprocal tariffs, although the details of the plan would not be made public until Monday next week, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. The Cabinet established an economic and trade task force in November last year to deal with US trade and tariff related issues, Kuo told reporters outside the legislature in Taipei. The task force has been analyzing and evaluating all kinds of scenarios to identify suitable responses and determine how best to assist domestic industries in managing the effects of Trump’s tariffs, he
TIGHT-LIPPED: UMC said it had no merger plans at the moment, after Nikkei Asia reported that the firm and GlobalFoundries were considering restarting merger talks United Microelectronics Corp (UMC, 聯電), the world’s No. 4 contract chipmaker, yesterday launched a new US$5 billion 12-inch chip factory in Singapore as part of its latest effort to diversify its manufacturing footprint amid growing geopolitical risks. The new factory, adjacent to UMC’s existing Singapore fab in the Pasir Res Wafer Fab Park, is scheduled to enter volume production next year, utilizing mature 22-nanometer and 28-nanometer process technologies, UMC said in a statement. The company plans to invest US$5 billion during the first phase of the new fab, which would have an installed capacity of 30,000 12-inch wafers per month, it said. The
Taiwan’s official purchasing managers’ index (PMI) last month rose 0.2 percentage points to 54.2, in a second consecutive month of expansion, thanks to front-loading demand intended to avoid potential US tariff hikes, the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said yesterday. While short-term demand appeared robust, uncertainties rose due to US President Donald Trump’s unpredictable trade policy, CIER president Lien Hsien-ming (連賢明) told a news conference in Taipei. Taiwan’s economy this year would be characterized by high-level fluctuations and the volatility would be wilder than most expect, Lien said Demand for electronics, particularly semiconductors, continues to benefit from US technology giants’ effort
‘SWASTICAR’: Tesla CEO Elon Musk’s close association with Donald Trump has prompted opponents to brand him a ‘Nazi’ and resulted in a dramatic drop in sales Demonstrators descended on Tesla Inc dealerships across the US, and in Europe and Canada on Saturday to protest company chief Elon Musk, who has amassed extraordinary power as a top adviser to US President Donald Trump. Waving signs with messages such as “Musk is stealing our money” and “Reclaim our country,” the protests largely took place peacefully following fiery episodes of vandalism on Tesla vehicles, dealerships and other facilities in recent weeks that US officials have denounced as terrorism. Hundreds rallied on Saturday outside the Tesla dealership in Manhattan. Some blasted Musk, the world’s richest man, while others demanded the shuttering of his
RSS