With liquidity still abundant, commercial real estate properities in Taipei may see selling prices peak (or climb higher) next year while the global ecocnomic slowdown constrains the leasing market, a Jones Lang LaSalle's director said yesterday.
The remark came after Jones Lang LaSalle — a financial and professional services firm specializing in real estate — released its latest survey for the Taipei Grade A office market.
The vacancy rates and rents for Grade A offices in Taipei generally remained flat in the third quarter from the second quarter, the report said.
The average vacancy for Grade A offices in Taipei dropped to 10.07 percent during the July-to-September period, a slight decrease of 0.1 percentage points from the April-to-June period, while rents remained at NT$2,387 (US$81.50) per ping (3.3m2) per month in the third quarter, similar to that of the previous quarter, the report’s data showed.
However, total take-up fell considerably, from the 12,445 ping recorded in the second quarter to 782 ping in the third quarter, as the depressed global economy pushed corporate tenants to adopt a wait-and-see stance.
INVESTMENT
On the investment front, the total transaction volume of commercial real estate in the third quarter amounted to NT$54.7 billion, up 82.5 percent and 7.16 percent from a quarter and a year earlier, according to the report.
“The slowing leasing sentiment in the Taipei Grade A office market showed the current trading momentum and prices for office buildings were mainly supported by abundant capital, instead of economic fundamentals,” Jones Lang LaSalle managing director Tony Chao (趙正義) told a media briefing.
The situation may cause momentum in trading prices for commercial properties to peak in the near future, Chao added.
Chao said momentum of trading volume may continue to support the commercial market steadily, with Taiwan’s financial and insurance institutions remaining the most active investors.
THIRD QUARTER
For the third quarter, financial and insurance institutions that have been investigating suitable assets accounted for around 55 percent of total transactions, followed by property developers that contributed another 31 percent, the report’s statistics showed.
In related news, data released by real estate service provider DTZ (戴德梁行) on Monday said the transaction volume for commercial property throughout Taiwan topped NT$46.5 billion in the third quarter of the year, up 72.5 percent from the second quarter, while real estate transactions volume also surged to NT$57.2 billion in the third quarter, the highest quarterly level in nearly two years, the Chinese-language Economic Daily News reported.
DAMAGE REPORT: Global central banks are assessing war-driven inflation risks as the law of unintended consequences careens around the world, spiking oil prices Central banks from Washington to London and from Jakarta to Taipei are about to make their first assessments of economic damage after more than two weeks of conflict between the US and Iran. Decisions this week encompassing every member of the G7 and eight of the world’s 10 most-traded currency jurisdictions are likely to confirm to investors that the specter of a new inflation shock is already worrying enough to prompt heightened caution. The US Federal Reserve is widely expected to do exactly what everyone anticipated weeks ahead of its March 17-18 policy gathering: hold rates steady. The narrative surrounding that
Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) share of the global foundry market rose to almost 70 percent last year amid booming demand for artificial intelligence (AI), market information advisory firm TrendForce Corp (集邦科技) said on Thursday. The contract chipmaker posted US$122.54 billion in revenue, up 36.1 percent from a year earlier, accounting for 69.9 percent of the global market, TrendForce said. Its share was up from 64.4 percent in 2024, it said. TSMC’s closest rival, Samsung Electronics, was a distant second, posting US$12.63 billion in sales, down 3.9 percent from a year earlier, for a 7.2 percent share of the global market. In the
HEADWINDS: The company said it expects its computer business, as well as consumer electronics and communications segments to see revenue declines due to seasonality Pegatron Corp (和碩) yesterday said it aims to grow its artificial intelligence (AI) server revenue more than 10-fold this year from last year, driven by orders from neocloud solutions clients and large cloud service providers. The electronics manufacturing service provider said AI server revenue growth would be driven primarily by the Nvidia Corp GB300 server platform. Server shipments are expected to increase each quarter this year, with the second half likely to outperform the first half, it said. The AI server market is expected to broaden this year as more inference applications emerge, which would drive demand for system-on-chip, application-specific integrated circuits
At a massive shipyard in North Vancouver, Canadian workers grind metal beams for a powerful new icebreaker crucial to cementing the country’s presence in the increasingly contested arctic. Icebreakers are specialized, expensive vessels able to navigate in the frozen far north. And “this is the crown jewel,” said Eddie Schehr, vice president of production at the Seaspan shipyard. For Canadian Prime Minister Mark Carney, who heads to Norway next Friday to observe arctic defense drills involving troops from 14 NATO states, Canada’s extreme north has emerged as a strategic priority. “Canada is and forever will be an Arctic nation,” he said ahead of
RSS