Commercial property

40.8% increase in commercial real estate transactions

PLANNED ACTION:
Industrial properties and land are expected to sell well this year, while prices near Taoyuan Airport and Taichung are expected to rise

  • By Crystal Hsu / Journalist

Commercial real estate transactions in the last quarter jumped 40.8% from three months earlier to NT $ 46.3 billion ($ 1.67 billion), mainly driven by demand for industrial properties in the north from Taiwan, Cushman & Wakefield Taiwan said yesterday.

Domestic and foreign real estate funds have bolstered the market, as evidenced by Microsoft Taiwan Corp’s purchase of factories in Taoyuan and Micron Technology Inc’s acquisition of factories in Taichung as part of the ongoing realignment chain. global sourcing, the real estate service provider said.

For all of last year, commercial real estate transactions soared 14% year-on-year to a record NT $ 152.8 billion, with factories and offices accounting for 66.5%, Cushman said. & Wakefield Taiwan.

Photo: Hsu Yi-ping, Taipei Times

Industrial properties alone have grown 42% per year, with most transfers concentrated in Hsinchu or north to meet self-occupation needs, the company said.

Demand for industrial properties is expected to remain strong this year, as conglomerates like to have affiliates nearby to improve their operational efficiency, he said.

The supply of office buildings in and around Taipei is quite limited, which is why new complexes are in demand, Cushman & Wakefield Taiwan said.

Likewise, land deal activity is believed to remain high this year, although deals declined to NT $ 289.3 billion last year due to a lack of transfers in Taipei’s central business districts, a he declared.

Land prices near Taiwan Taoyuan International Airport and upcoming Taichung business districts and MRT stations are likely to rise, he said.

Developers are keen to build up a stock of land in residential and commercial areas, reflecting optimistic views on their part, despite credit checks, he said.

Cushman & Wakefield Taiwan Managing Director Billy Yen (顏炳立) said house prices are unlikely to fall for the foreseeable future, given the rising cost of land and building materials.

House prices rose most noticeably for presale projects in second-tier locations last year, which would prompt buyers to focus on existing homes in central areas again this year, Yen said. .

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