A complex in Hsinchu Industrial Park (新竹工業區) was sold for a record NT$376,000 (US$12,381.45) per ping (3.3m2), as demand for manufacturing property remains solid, despite economic uncertainty and unfavorable legislation, CBRE Taiwan said on Tuesday.
That represented a price rise of 34 percent compared with property transactions in the area last year, offering a boost to the local property market, which is widely expected to experience a correction after a ban on transfers of presale houses cleared the legislature earlier this month.
The complex has a floor area of 1,550 ping and a land area of 1,358 ping at the industrial park in Hsinchu County’s Hukou Township (湖口).
Photo: Huang Mei-chu, Liberty Times
CBRE Taiwan said that tech firms, electronics makers and biotechnology firms had expressed an interest in purchasing the property prior to the sale.
The 11-year-old complex is well maintained and qualified for a floor area ratio of 300 percent, from its current 111 percent, and might receive even more favorable construction terms if it meets the requirements of government programs that support industrial development, CBRE Taiwan said.
Those conditions are behind the interest in the complex and helped it attract the record bid, it said.
Self-occupancy needs continue to be important in driving industrial property transactions this year, even though interest rate hikes and economic uncertainty have cast a shadow over the market outlook, CBRE Taiwan said.
Industrial property transactions last year declined 7 percent to NT$146.2 billion, faring relatively well compared with a 28 percent slump in commercial and land deals to NT$333 billion, it said.
Properties in the Hsinchu Industrial Park and Hsinchu Science Park (新竹科學園區), cradle of the nation’s high-tech ventures, are particularly popular due to limited supply, it said.
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