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.
Sales across Taiwan’s food and beverage sector nosedived 22.8 percent year-on-year to NT$47.9 billion (US$1.59 billion) last month, the largest decline in 20 years, the Ministry of Economic Affairs said yesterday. One of the first victims of the COVID-19 outbreak, the sector has posted double-digit annual declines in sales for three months in a row. “Restaurants ... took the biggest hit, as the strict anti-epidemic measures implemented have had a notable impact [on revenue],” Department of Statistics Director-General Wang Shu-chuan (王淑娟) told a news conference in Taipei, referring to seating schemes spacing diners further apart. “Consumers are also less willing to eat
‘PERFECT TIMING’: The updated requirement would free up 4 million more masks per day for manufacturers, which are expected to sell up to 8 million units daily The government would requisition 8 million masks daily to ensure that the nation has sufficient supplies after a ban on mask exports is lifted on Monday next week, Minister of Economic Affairs Shen Jong-chin (沈榮津) said yesterday. “We have decided to lower the requirement from 12 million units to 8 million units per day, providing them [local mask suppliers] with 4 million more masks to sell freely according to market mechanisms,” Shen told reporters after a meeting with domestic mask manufacturers. The figure was determined based on local market demand, Shen said, pointing to declining mask purchases as Taiwan gets its COVID-19
IPO MOMENTUM CLOUDED: The major questions are whether fallout from Beijing’s proposed security bill would affect the return of capital and the US’ response to the bill Risks are mounting for Hong Kong’s stock market, the world’s fourth-largest, after the biggest plunge for the benchmark gauge in five years. China’s shock decision last week to impose a law cracking down on dissent has led to a flare up of protests in the territory, sparked concern over capital outflows and increased tensions with the US. That has placed Hong Kong, and its financial markets, on the front lines of a growing clash between the world’s two largest economies. The Hang Seng Index plummeted 5.6 percent on Friday, its worst drop since July 2015, when a bubble popped in China. A
Local banks’ combined exposure to China in the first quarter dropped for the third consecutive quarter, to NT$1.62 trillion (US$53.86 billion), as they trimmed investment and loan positions amid the COVID-19 pandemic, Financial Supervisory Commission (FSC) data showed. Their exposure fell 1 percent from the previous quarter, compared with a 4.9 percent decline to NT$1.64 trillion at the end of December last year and a dip of 2.1 percent to NT$1.73 trillion at the end of September, the data showed. “Exposure has been declining since the second quarter last year, as lenders’ clients did not need as much funding as before after