Demand for industrial land and properties might increase further in the short to medium term as China-based Taiwanese manufacturers take advantage of reshoring initiatives to cut exposure to trade conflict-related risks, CBRE Taiwan said yesterday.
Authorities have unveiled a three-year program to help China-based manufacturers move back to Taiwan to avoid punitive tariffs from Washington on Chinese goods.
The program, which took effect this year, provides incentives including land provisioning, help with staffing, tax credits, utility discounts and funding services. Specific measures include rent waivers at industrial parks for two years.
“More Taiwanese firms in China have voiced a willingness to move back to Taiwan,” CBRE Taiwan said in a report, adding that some already took action last year.
The international property broker said that it recorded several transactions last year involving manufacturers relocating from China, with the largest being Quanta Computer Inc (廣達), the main assembler of Apple Inc’s MacBook and Apple Watch.
Quanta acquired an 8,900 ping (29,421m2) factory complex in Taoyuan for NT$4.28 billion (US$138.68 million) and plans to turn the site into a manufacturing base for high-end products, as well as an artificial intelligence laboratory, CBRE Taiwan said.
Clients have demonstrated a keen interest in industrial land and properties in Taipei, New Taipei City and Taoyuan, the broker said, adding that Kaohsiung is also attractive given its status as a manufacturing hub.
Manufacturers are eligible for the stimulus program if they are affected by the US-China trade conflict, have been operating in China for more than two years and intend to include high-value or smart manufacturing in their operations after relocation, CBRE Taiwan said.
Industrial land deals last year soared 77.1 percent from 2017 to NT$54.98 billion, with self-occupancy driving 84 percent of transactions, the consultancy said.
Authorities lent support by introducing measures to boost land utilization, fining owners for who fail to build factories within three years of purchase of plots in industrial parks, with idle lots subject to public auctions later, it said.
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