Most Taiwanese companies remain positive about the property market and plan to raise their stakes in it in the coming 12 months, a survey released yesterday by Colliers International Taiwan (高力國際) showed.
“Eighty-five percent of respondents held positive views, although most put off investment amid the virus outbreak,” the local branch of the Canadian company said.
Sixty-six percent said they intended to increase their stake in the market and 80 percent believed property prices would remain stable, it added.
Photo: Peter Lo, Taipei Times
Colliers Taiwan surveyed domestic developers, life insurance companies, asset management companies, hotels and manufacturers, as well as influential families and individuals.
Plots of land topped the list for potential investments, followed by office spaces with stable rent incomes and industrial factories, the survey said.
Rent rates are generally expected to increase modestly in the next two years, but a severe lack of supply in popular locations could slow the pace of transactions, it said.
The COVID-19 pandemic is reshaping people’s lifestyles and giving birth to a stay-at-home economy highlighted by online shopping and remote working, Colliers Taiwan said.
The trend has been fueling demand for warehousing and logistics services, making related properties attractive investment targets, the consultancy said.
Taiwan’s low birthrate and aging population are lending support to investments in retirement housing and urban renewal projects, it said.
Interest in retail spaces and hotel buildings has taken a back seat as the sectors have been hit by border controls and movement restrictions during the COVID-19 pandemic, it said.
Developers and life insurance companies are the most avid investors and would take action after the COVID-19 crisis is over, Colliers Taiwan said.
Interest rate hikes and credit controls could affect investment decisions, it added.
The central bank last week left interest rates unchanged at its quarterly board meeting.
Monetary authorities might leave things unchanged for quite a while in the absence of major inflation risks, it said.
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