Tue, Jul 17, 2007 - Page 12 News List

Taipei property market enjoys steady growth

POWER OF ATTRACTION Improving infrastructure and a technology cluster effect have made Neihu and Nangang attractive to a number of investors

By Jessie Ho  /  STAFF REPORTER

The commercial property market in Taipei City grew steadily in the second quarter, supported by increasing investment in Neihu and Nangang districts, a report by CB Richard Ellis Ltd (CBRE) Taiwan said yesterday.

Propelled by the improving economy, the business property market -- in both investment and office leasing -- in Taipei was buoyant in the last quarter and is expected to continue performing well, the report said.

With the technology cluster effect and improving infrastructure, Neihu and Nangang have attracted an increasing number of investors seeking commercial property, CBRE said.

Transactions concluded in the districts during the second quarter included China Life Insurance (中國人壽), which purchased the Everelite Technology Co's (艾群科技) office building in Nangang Software Park (南港軟體工業園區) for NT$428 million (US$13 million) and then leased office space to Everelite, the report said.

Although the benchmark interest rate increased 0.25 percent to 3.125 percent last month, the rate is still considered low and will not deter institutional investors, the real estate firm said.

Supply of Grade A office space in Taipei remained at 427,352 ping (1.3 million square meters) for the seventh consecutive quarter as no major office buildings were completed, the report said.

The overall vacancy rate slightly dropped to 9 percent and is expected to further decrease with the absence of new supply and steadily growing demand, it said.

The average monthly rent for Grade A offices in Taipei rose 1.7 percent to NT$2,341 per ping in the last quarter, the report said. Xinyi District continued to lead the Grade A office leasing market with the highest monthly rent of NT$2,489 per ping, up NT$15 from the first quarter. Dunhua S Road and Renai Road circle were a close second.

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