Grade-A office and commercial property markets in Taipei City are expected to outperform their peers in Asia to experience the smallest decline in both rentals and capital values during the downturn in the property market, Jones Lang LaSalle executives said yesterday.
The international real estate services provider yesterday forecast the office and commercial markets in Mumbai and Hong Kong would hit their trough later this year, earlier than counterparts in Taipei, Beijing, Shanghai and Tokyo, whose markets will only bottom out next year, Alastair Hughes, Jones Lang LaSalle’s chief executive officer in the Asia-Pacific region, told a media briefing.
When the Asian market reverses it downward course next year, the market in Taipei will likely see a meager decline of between 5 percent and 15 percent in rents and another decline of between zero and 10 percent in capital gains — “the least worst in Asia,” Tony Chao (趙正義), managing director of Jones Lang LaSalle Taiwan, added at the briefing.
The capital markets of commercial properties in Beijing and Shanghai are relatively less affected since the realtor forecast their markets would bottom out later this year and would respectively total the second-smallest decline of between 5 percent to 15 percent and the third-smallest decline of between 35 percent to 45 percent, Hughes said.
As a result of over-supply, the market in Singapore, however, will be the worst hit with rebound likely to be delayed until 2011 and will likely see the biggest decline in rents — between 70 percent to 80 percent — and another decline of between 50 percent and 60 percent in the capital value of commercial properties, the realtor said.
A survey by Jones Lang LaSalle earlier last month showed that monthly rentals of four major grade-A office districts in Taipei averaged NT$2,425 per ping (3.3m2) in the third quarter of this year, down 6.4 percent year-on-year, with a vacancy rate of 16.5 percent.
Sherry Wu (吳瑤華), director of the realtor’s commercial property market, forecast rentals of the city’s grade-A offices would drop between 10 percent and 15 percent year-on-year in the first quarter of next year before reversing course to average 3 percent growth. The vacancy rate would climb to 18 percent by the year’s end and continue to rise until 2011, she said.
Quanta Computer Inc (廣達) chairman Barry Lam (林百里) is expected to share his views about the artificial intelligence (AI) industry’s prospects during his speech at the company’s 37th anniversary ceremony, as AI servers have become a new growth engine for the equipment manufacturing service provider. Lam’s speech is much anticipated, as Quanta has risen as one of the world’s major AI server suppliers. The company reported a 30 percent year-on-year growth in consolidated revenue to NT$1.41 trillion (US$43.35 billion) last year, thanks to fast-growing demand for servers, especially those with AI capabilities. The company told investors in November last year that
Intel Corp has named Tasha Chuang (莊蓓瑜) to lead Intel Taiwan in a bid to reinforce relations between the company and its Taiwanese partners. The appointment of Chuang as general manager for Intel Taiwan takes effect on Thursday, the firm said in a statement yesterday. Chuang is to lead her team in Taiwan to pursue product development and sales growth in an effort to reinforce the company’s ties with its partners and clients, Intel said. Chuang was previously in charge of managing Intel’s ties with leading Taiwanese PC brand Asustek Computer Inc (華碩), which included helping Asustek strengthen its global businesses, the company
Taiwanese suppliers to Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) are expected to follow the contract chipmaker’s step to invest in the US, but their relocation may be seven to eight years away, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. When asked by opposition Chinese Nationalist Party (KMT) Legislator Niu Hsu-ting (牛煦庭) in the legislature about growing concerns that TSMC’s huge investments in the US will prompt its suppliers to follow suit, Kuo said based on the chipmaker’s current limited production volume, it is unlikely to lead its supply chain to go there for now. “Unless TSMC completes its planned six
Power supply and electronic components maker Delta Electronics Inc (台達電) yesterday said it plans to ship its new 1 megawatt charging systems for electric trucks and buses in the first half of next year at the earliest. The new charging piles, which deliver up to 1 megawatt of charging power, are designed for heavy-duty electric vehicles, and support a maximum current of 1,500 amperes and output of 1,250 volts, Delta said in a news release. “If everything goes smoothly, we could begin shipping those new charging systems as early as in the first half of next year,” a company official said. The new
RSS