Taiwan’s commercial property deals may rise in the second half as demand for offices, hotels, retail and industrial space climbs on improving relations with China, the Taiwanese unit of London-based Savills PLC said.
“With more [Chinese] companies and visitors making their presence [in Taiwan], deals in [the Taiwanese] market are anticipated to manage further growth,” Savills (Taiwan) Ltd’s general manager Gordon Kao (高銘頂) said in a telephone interview.
He expects turnover of commercial property in Taiwan to gain by between 6 percent and 8 percent in the past six months of this year from NT$43.5 billion (US$1.4 billion) in the first half.
Turnover of commercial properties rose 18.5 percent to NT$27.7 billion in the second quarter from a year earlier, Savills said. That was 75 percent higher than the previous quarter.
In the second quarter, Fubon Life Insurance Co (富邦人壽) purchased Hanover Building in Taipei for NT$4.71 billion, while Pacific Sogo Department Stores Co (太平洋崇光百貨) paid NT$5.89 billion for Windance Shopping Center in Hsinchu.
The central bank cut key interest rates seven times between September 2008 and February last year to a record low to weather the global financial crisis. It raised the rate 12.5 basis points in June to 1.375 percent.
“The rate rise is unlikely to significantly affect commercial property lending, owing to the competitive nature and excess liquidity in Taiwan’s banking sector,” Kao said. “The impact of tightening monetary policy can be offset by possible capital gains in the sector.”