The nation’s office leasing market last quarter proved resilient as a lack of new supply and stable demand kept rents and vacancy rates nearly unchanged, international property consultancy Jones Lang LaSalle Inc (JLL) said yesterday.
The same factors might keep the market steady for the rest of this year, JLL said.
Vacancy rates for grade A offices in Taipei in the January-to-March period edged up 0.3 percentage points to 2.4 percent, while rents rose 0.1 percentage points to NT$2,809 (US$93.16) per ping (3.3m2) per month, JLL Taiwan senior market director Brian Liu (劉建宇) told an online news conference.
The rental total made Taipei the second-best performer behind Tokyo’s 1.4 percent increase, while other cities internationally reported modest declines due to the COVID-19 pandemic, Liu added.
The relatively mild outbreak in Taiwan and a lack of new supply for next year led to a greater number of upscale office space being rented, he said.
This year, office space rentals — a reliable source of income for institutional landlords — might remain flat, as companies become cautious about expansion, compared with last year’s expectations of stable gains, Liu added.
If the crisis persists, corporate tenants might request grace periods for rental payments or temporary reductions in rent to help weather the business slowdown, Liu said.
While nearly 29,272 ping of office space is to enter the market later this year, vacancy rates might hover at less than 2.5 percent, he said.
The commercial property market is a different story, JLL Taiwan managing director Tony Chao (趙正義) said.
“Now could be the worst time or best time [for property investment] depending on how the pandemic settles,” Chao said.
“Market players are conservative about real-estate investments, but the health crisis will eventually be over,” he added
JLL expects to see a U-shaped recovery — possibly by the third quarter of this year, Chao said.
RESTRUCTURING: Taichung and Taoyuan profited most from local firms moving back high-end manufacturing amid the US-China decoupling of trade ties, the ministry said The government’s “Invest in Taiwan” initiative might this year see NT$627.1 billion (US$21.7 billion) of investment pledges realized, with several firms raising stakes and two dropouts due to customer losses, Minister of Economic Affairs (MOEA) Wang Mei-hua (王美花) said yesterday. Wang made the statement at the monthly meeting of the Third Wednesday Club, a local trade group featuring the top 100 firms of each business sector. Since early last year, the government has launched three programs intended to help local companies grapple with US-China trade rows and the COVID-19 pandemic, mainly through moving production lines back to Taiwan. Thus far, the ministry
JOBS AT RISK? Most Cathay Dragon routes are to be operated by Cathay Pacific or a subsidiary, but it was unclear how Taiwanese workers would be affected Cathay Pacific Airways Ltd (國泰航空) yesterday said it is planning new flight services for Taiwan as it announced a corporate restructuring that included the shutdown of its regional subsidiary, Cathay Dragon (國泰港龍), and could lead to job cuts in Taiwan. Cathay Pacific said the shutdown means that the one round-trip service between Taichung and Hong Kong per day and seven round-trip services between Kaohsiung and Hong Kong operated by Cathay Dragon prior to the COVID-19 pandemic would be terminated. “The parent company is planning a new schedule between Taiwan and Hong Kong,” Cathay Pacific assistant manager for corporate communications Moses Hou (侯恩錫)
OVERHEATED MARKET?: The gauge would be designed to provide more reliable information than private-sector data, and help improve policymaking, the council said The National Development Council (NDC) is considering creating a business climate index on Taiwan’s property market, allowing policymakers to better monitor market movements and intervene if necessary, NDC Minister Kung Ming-hsin (龔明鑫) said yesterday. Kung made the remarks at a meeting of the legislature’s Economic Committee where lawmakers from across party lines voiced concerns about housing price hikes driven by capital repatriation. Kung said that the council is assessing the possibility of creating an index designed to provide more accountable and transparent information than data provided by private-sector market analysts, and could help improve policymaking. The council would compile a report on
STOCK MARKETS TAIEX closes slightly higher The TAIEX closed slightly higher yesterday as market sentiment remained cautious over the Nov. 3 US presidential election. Contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) was again the anchor stabilizing the broader market, preventing the main board from falling into negative territory at the end of the session, dealers said. The TAIEX closed up 14.88 points, or 0.12 percent, at 12,877.25, on turnover of NT$167.982 billion (US$5.81 billion). TSMC, the most heavily weighted stock on the local market, rose 0.44 percent after fluctuating between NT$451 and NT$456. The semiconductor subindex and the bellwether electronics sector