Commercial property transactions last quarter spiked 40.8 percent from three months earlier to NT$46.3 billion (US$1.67 billion), underpinned mainly by demand for industrial properties in northern Taiwan, Cushman & Wakefield Taiwan said yesterday.
Property funds at home and abroad shored up the market as seen in the purchase of plants in Taoyuan by Microsoft Taiwan Corp and the acquisition of plants in Taichung by Micron Technology Inc amid ongoing global supply chain realignments, the property service provider said.
For the whole of last year, commercial property deals climbed 14 percent year-on-year to a record NT$152.8 billion, with factories and office space accounting for 66.5 percent, Cushman & Wakefield Taiwan said.
Photo: Hsu Yi-ping, Taipei Times
Industrial properties alone expanded 42 percent annually, with most transfers concentrated in Hsinchu or northward to meet self-occupancy needs, the company said.
Demand for industrial properties is expected to remain strong this year, because conglomerates like to have subsidiaries close to enhance operating efficiency, it said.
The supply of office buildings in and around Taipei is quite limited, explaining why new complexes are in demand, Cushman & Wakefield Taiwan said.
Likewise, land deal activity would remain high this year, although transactions last year softened to NT$289.3 billion due to a lack of transfers in Taipei’s central business districts, it said.
Prices for land near Taiwan Taoyuan International Airport, and Taichung’s upcoming business districts and MRT stations are likely to rise, it said.
Developers are keen to build up land stock in residential and commercial areas, reflecting optimistic views on their part, despite credit controls, it said.
Cushman & Wakefield Taiwan managing director Billy Yen (顏炳立) said that housing prices are unlikely to fall in the foreseeable future, given the mounting cost of land and building materials.
Housing prices increased most evidently for presale projects in second-tier locations last year, which would drive buyers to shift focus back to existing homes in central areas this year, Yen said.
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