Fri, Jun 15, 2012 - Page 11 News List

Taipei office rental fees higher on fuel prices and scarcity

Staff writer, with CNA

Taipei’s office rental fees continued to grow in the second quarter of the year, as a limited amount of new office space and rising fuel and electricity prices pushed fees higher, according to a real estate expert yesterday.

Office rental fees increased to NT$1,943 (US$64.76) per ping (3.3m2), with office rentals maintaining a stable return of about 2.5 percent, Global Assessment Management Co (全球資產) president James Ko (柯宏安) said.

The management company is a subsidiary of Sinyi Realty Co (信義房屋).

A survey of 123 office buildings in Taipei showed that office vacancy rates had returned to levels last seen before the global financial crisis, having dropped for seven consecutive quarters to a low of 8.89 percent.

Xinyi District (信義) had the highest vacancy rate of 11.98 percent, while the Songjiang-Nanjing area had the lowest vacancy rate of 5.56 percent.

Meanwhile, a My Housing Magazine report published yesterday showed a decline in the number of pre-sold houses and a rise in the number of new houses being put on the market in northern Taiwan in the first half of the year.

The housing market in Taipei, New Taipei City (新北市) and Keelung, Taoyuan, Yilan and Hsinchu cities experienced a 19 percent decline in housing projects compared with the same period last year, with the total value of the projects plunging by 12.6 percent to NT$36.34 billion.

The magazine attributed the decline to the luxury tax introduced in June last year and the tightening of policies on real-estate financing for developers and home buyers.

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