Vacancy rates for grade A offices in Taipei held steady at 2.05 percent last quarter with virtually flat rents, as Taiwan’s quick control of its COVID-19 outbreak allowed the local leasing market to emerge unscathed.
The resilient showing came even though the global leasing market reported a 59 percent slump, with the pace of retreat 65 percent in the US and 61 percent in Asia, Jones Lang LaSalle Inc data showed.
“Taiwan put up a remarkable performance, thanks to its efficient virus control,” Jones Lang LaSalle Taiwan senior market director Brian Liu (劉建宇) told a news conference in Taipei yesterday.
The vacancy rate was a 30-year low, while rents climbed to a 19-year high, Liu said.
He forecast a sustained rent increase toward a record, likely next year, of NT$3,000 per ping (3.3m2), as there is no sign of a lot of new supply.
Taipei-based China Life Insurance Co (中國人壽) has made clear it would not release new space at its new office building when construction is completed in 2022, Liu said.
Fubon Life Insurance Co (富邦人壽) has inked a deal to lease 6,000 ping of office space at its forthcoming building on Liaoning Street in Taipei’s Zhongshan District (中山) to Standard Chartered Bank and would retain the other 7,000 ping for its own use.
Transglobe Life Insurance Co (全球人壽) has agreed to lease 4,600 ping of new office space, according to a Jones Lang LaSalle tally.
That suggests no new office supply between now and the end of 2022 in Taipei’s central business districts, Liu said.
Taiwan’s economy has received a boost from global demand for remote working and learning devices amid the pandemic, and renewed US-China tensions, Jones Lang LaSalle Taiwan managing director Tony Chao (趙正義) said.
Both factors are driving global technology giants to restructure supply chains, bringing order transfers to local firms, Chao said.
The government lent support by introducing stimulus measures to make Taiwan an attractive investment destination and the strategy paid off, he said.
Chao said his prediction last year about a boom this year has been realized, judging by record commercial property transactions and active land deals last quarter.
Growth momentum is to sustain this quarter, despite lingering uncertainty, as Taiwan has outperformed the world in terms of economic recovery, Jones Lang LaSalle said.
HSBC Bank (Taiwan) Ltd (匯豐台灣商銀) has approved two sustainability-linked loans totaling NT$450 million (US$15.55 million) for Taya Group (大亞集團) and Sinbon Electronics Co (信邦電子), the bank said yesterday, adding that interest rates would fall if the borrowers’ sustainability performance improves. Those marked the first sustainability-linked loans granted by HSBC Taiwan, it said. While HSBC Taiwan has experience providing green loans for the nation’s developers of renewable energy sources to support their projects, the bank began focusing on sustainability-linked loans to meet rising demand from companies in other sectors planning to undertake sustainability programs, it said. “As we reward our clients who reach their
‘NEW TRAVEL MARKET’: The carrier initially planned to lay off about 8,000 people globally, but after government intervention reduced that to 18 percent of its workforce Cathay Pacific Airways Ltd (國泰航空) would cut 6,000 jobs and close its Cathay Dragon brand, the South China Morning Post reported, as part of a strategic review to combat the unprecedented damage caused by the COVID-19 pandemic. The Hong Kong-based airline is expected to officially announce the plan after the market close today, the newspaper said. It initially planned about 8,000 layoffs globally, but after government intervention reduced that to 18 percent of its total workforce, including about 5,000 jobs in Hong Kong, it said. The company, which posted a HK$9.9 billion (US$1.3 billion) loss in the first half, has for months
V-SHAPED RECOVERY: Local tech firms have benefited from strong demand for 5G deployment and electronic devices required for a low-contact economy, CIER said The Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) yesterday raised its forecast for the nation’s GDP growth this year to 1.76 percent, from its previous estimate of 1.33 percent, saying exports and private consumption have staged a V-shaped recovery from the COVID-19 pandemic in the second half of the year. “The upgrade aims to reflect the fast recovery in Taiwan’s exports and domestic demand,” CIER president Chang Chuang-chang (張傳章) told a media briefing. The Taipei-based think tank said the economy might have expanded 2.77 percent last quarter — emerging from a 0.78 percent decline in the second quarter — and would grow
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