The grade-A office space in Taipei is continuing to fill up in the second quarter, driving the vacancy rate to its lowest level in recent years, according to research by two international real estate agencies.
The vacancy rate fell to 10.5 percent in the second quarter from the first quarter's 14.1 percent, Jones Lang LaSalle Taiwan (仲量聯行) said in its quarterly report released on Thursday.
That is the lowest rate in over two years.
CB Richard Ellis Ltd (世邦魏 理仕), however, said the vacancy rate in the second quarter fell to 9.41 percent from 12.57 in the first -- a third consecutive quarter of decline. CB Richard Ellis's local branch is slated to release its quarterly report on Monday.
The discrepancy between the two firm's figures is due to the different targets in their property portfolios.
"Strong take-up and the absence of new supply led to the decline in office vacancy rates [in the second quarter]," said Calvin Wang (王治平), managing director of Jones Lang LaSalle Taiwan.
Some 14,500 ping of grade-A office space in Taipei was taken up in the second quarter, following on from the 14,000 ping absorbed in the first quarter, which together was 40 percent more than in the whole of last year, Jones Lang LaSalle said in its report.
Wil Asato, manager of CB Richard Ellis' global research and consulting, yesterday said that some 21,000 ping of grade-A office space has been taken up in the second quarter, up from the first quarter's 2,700 ping.
The take-up of the Fubon Nanjing Building's office space alone reached some 14,000 ping in the second quarter, lowering the building's vacancy rate from 93.47 percent in the last quarter to 9.38 percent, Asato said.
Therefore, Jones Lang LaSalle estimates that the gross achievable rents fell 0.9 percent to average at NT$2,070 per ping while CB Richard Ellis calculates that the figure fell by 0.34 percent to reach NT$1,944 per ping, the smallest decline in four consecutive quarters.
Wang and Asato did agree yesterday that the decline of rents was one factor driving the strong take-up in the second quarter, since many businesses continued to upgrade from grade-B and grade-C buildings to grade-A buildings.
The two executives also agreed that the take-up is expected to remain flat in the third quarter with rents stabilizing and the negotiation range with grade-A office landlords narrowing due to a limited supply.
Upbeat about Taipei's commercial property market, Cynthia Chu (朱幸兒), a director with DTZ Debenham Tie Leung International Property Advisers (戴德梁行), expressed concern yesterday that vacancy rates in the third quarter may shoot up after the opening of Taipei 101 in October, releasing up to 60,000 ping of new office space onto the market.
The commercial market's buying activities may also slow down in the next quarter because of concerns that the central bank may follow the US Fed's decision to raise interest rates in the near future, Chu added.
Citing CB Richard Ellis's yet-to-be released report, Asato said the vacancy rate of Taipei's prime office space also fell by 2.63 percent to reach 9.37 percent, with rents averaging NT$2,195 -- a 0.79 percent decline from the previous quarter.
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
Gold surged to a fresh record on Friday, fueled by US dollar weakness and low interest rates, while silver headed for its best month since 1979. Spot bullion is up more than 10 percent this month, as US real yields lingered near record lows. While the ferocity of rallies in gold and silver cooled in the middle of the week, most market watchers predict there might be more gains ahead. Both metals have added about 30 percent this year, with gold and silver exchange-traded funds boosting holdings to a record, as concern about the fallout from the COVID-19 pandemic fuels demand for
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion