Permits for new office space construction totaled 612,000 ping (2 million square meters) in the first half of this year, up 91 percent from a year earlier, as demand for upscale offices remained strong, Shining Building Business Co (鄉林建設) said yesterday.
The growth, which occurred despite new policies unfavorable to building projects, could be attributed to companies that relocated operations from abroad, and to a lack of upscale office spaces in popular locations, the Taichung-based developer said.
In Taipei, permits for new office space construction reached 314,000 ping in the first six months, which not only expanded by 7.6 times from a year earlier, but outperformed new residential spaces whose combined areas total 251,000 ping, Shining Building said, citing government data.
It is the first time in 10 years that the areas of planned office spaces exceeded those of residential spaces, the company said, adding that developers had shifted their focus to commercial properties.
Strong demand for Grade A offices are behind the rise in Taipei’s prime districts, despite COVID-19 infections and economic uncertainty, it said.
Monthly rents in the Taipei 101 skyscraper climbed to more than NT$5,000 per ping and rose to more than NT$4,200 at the nearby Taipei Nan Shan Plaza office tower.
Vacancies hit record lows in the city’s Xinyi (信義), Daan (大安), Neihu (內湖) and Nangan (南港) districts, prompting potential tenants to look elsewhere in the city, it said.
Shining, which owns unsold mixed-use complexes in Shihlin District (士林) near the National Palace Museum, said that inquiries increased 30 percent recently.
The areas of residential spaces nationwide with building permits stagnated at 3.64 million ping, while that of warehousing and logistics facilities grew to 1.35 million ping, Shining said.
Unfavorable lending and tax terms intended to curb property speculation should not affect urban renewal or industrial development projects, Shining Building said.
Taipei and Kaohsiung had seen permits for commercial and industrial projects nearly double, it added.
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