Taiwan’s office rentals are likely to flatten or climb modestly from last year, compared with declines of 10 percent to 20 percent in Hong Kong and Singapore, thanks to the nation’s warming trade ties with China, Jones Lang LaSalle said yesterday.
Monthly rental rates for Grade-A offices averaged NT$2,383 per ping (3.3m2) in the first quarter, much lower than rates in Hong Kong and Singapore and less prone to corrections amid global economic uncertainty, the international property consultancy’s Taipei managing director Tony Chao (趙正義) said.
Chao said a new relocation wave is underway among multinational corporations that will take up about 6,300 ping of office space in Taipei’s prime Xinyi District (信義) later this year.
“We have observed a flight-to-quality trend among foreign firms amid the ongoing economic slowdown, bucking the flows to suburban areas during the global financial crisis in 2008,” Chao said.
Demand for quality office space may expand fast in the coming year and beyond as companies at home and abroad seek to take advantage of booming cross-strait ties, Chao said.
Jones Lang LaSalle is pressing the government to open the local market further to Chinese service providers, such as accounting firms, Chao said, adding that the latest round of deregulation is focused on the manufacturing industry.