The price of commercial space in Taipei has been on the rise as demand for business properties has remained strong, according to a report recently released by an asset management company.
The selling price of office space in Taipei is expected to average NT$592,000 (US$19,521) per ping (3.3m2) this year, Yung Ching Realty Group (永慶房屋) said in the report.
The forecast represents a 20.1 percent increase from NT$493,000 per ping on average last year.
Meanwhile, the total sales value of such property is expected to show a 31.1 percent rise this year from a year earlier, while the number of commercial property transactions is forecast to show growth of 3.4 percent year-on-year, the report said.
The indeces on the number of commercial property transactions in Taipei and their sales value stood at 120 and 150 respectively, the report said. In comparison, the indexes were 92 and 67 respectively in 2008 when the global financial meltdown hit, the report showed.
Both indices used the 2007 comparison base of 100, according to Yung Ching, one of Taiwan’s leading real-estate agents.
Jeffery Huang (黃增幅), a manager at Yung Ching, said a series of commercial property auctions in Taipei have attracted tremendous buying interest, boosting unit prices and total sales value.
In particular, as institutional investors such as life insurance companies have been the major buyers of office space in the city, demand for commercial property has become stable and growth in the real-estate segment has been steady, Huang said.
He forecast that life insurance companies would continue to buy commercial space in downtown Taipei, since they are sitting on an estimated NT$700 billion to NT$800 billion in funds.
Investment in commercial property has become very attractive because it is generating stable returns from rental for life insurance companies, he said.
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