Unaffected by the political situation, the office leasing market in Taipei was buoyant in the last quarter and is expected to climb steadily in the current quarter, propelled by the improving economy, CB Richard Ellis Ltd said in its latest report.
Since the vacancy rates in buildings such as Taipei 101 and the Taipei World Trade Center building have gradually decreased, rent has been gradually firming, the real estate service firm said.
The average monthly rent for Grade A offices in Taipei rose from NT$2,303 (US$70.74) per ping (3.3m2) to NT$2,316 per ping, while Grade B offices maintained a price of NT$1,717, according to the report.
"Recently, the rents in major cities have increased, but in Taipei prices started from a comparatively low base, giving it much more room to rise further," the report said.
The overall vacancy rate, however, rose from 10.8 percent to 11.14 percent as companies were moving from Grade B to Grade A office space, CB Richard Ellis said.
Xinyi District continued to lead the Grade A office leasing market with the highest monthly rent -- NT$2,408 per ping -- followed by Dunhua S Road and Renai Road circle at NT$2,066 and Minsheng and Dunhua N roads at NT$1,956, the report said.
In the real estate investment market, transactions and investor confidence continued to grow in the last quarter.
Xinyi and Dunhua districts, along with Neihu Technology Park were the prime investment targets of foreign and local financial and insurance groups, which eye an annual rental return of 5 percent to 6 percent, CB Richard Ellis said.
The report expected the market to be more robust with the launch of more real estate investment trusts (REIT) in the future.
Currently, the nation has seven REITs traded on the Taiwan Stock Exchange.
REIT projects in the pipeline include Taichung Sogo Department Store, and three office buildings funded by Great Taipei Gas Corp (
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