The fever in commercial property market is likely to spread to the central part of the nation this year in light of limited supply in Taipei, real estate consulting firm DTZ (戴德梁行) said yesterday.
Commercial property and land will be attractive among institutional investors this year amid excessive liquidity and low capital costs, DTZ said in a report.
The downtown area of -Taichung, where about NT$10 billion (US$343 million) in land will be put on the market this quarter, could become the newest battlefield, it said.
“As the [nation’s] economy continues to grow at a stable pace this year and the government refrains from drastic tightening measures, the boom in the commercial property market might be sustained,” DTZ said in the report.
Last year, DTZ spotted a trend among investors to acquire -commercial property and turn it into low-priced hotel space, in anticipation of individual tourists from China later this year.
About 175 hotel rooms in Ximen are expected to start operation later this year, it said.
Office buildings were also hotly contested products last year despite falling rental yields, the report said, adding that in one case, rental income accounted for just 1 percent of the investment.
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