Land prices in Taiwan’s industrial parks grew steeply in the past five years, which was driven by global supply chain realignment, reshoring of Taiwanese firms and demand from foreign technology firms, property consultancy Colliers International Taiwan (高力國際) said in a report yesterday.
The trend might sustain and lend more support to industrial land prices despite slow transactions this year, as firms spend cautiously amid economic uncertainty, Colliers said.
Industrial land transactions totaled NT$651.2 billion (US$20.4 billion) in the past five years with prices more than doubling in areas where land prices were previously cheap, Colliers said, after surveying 15 industrial parks in New Taipei City, Taoyuan, Hsinchu, Taichung, Tainan and Kaohsiung.
Photo courtesy of Colliers International Taiwan
Land prices soared by 20 percent to 125 percent and the increases were most conspicuous in southern Taiwan owing to low bases, it said.
Land prices for Kaohsiung’s Benjhou Industrial Park (本洲產業園區) spiked more than twofold, followed by Tainan’s Madou Industrial Park’s (麻豆工業區) 89 percent increase and Kaohsiung’s Dafa Industrial Park’s (大發工業區) 56 percent gain, it said.
The pace of growth reached 20 percent elsewhere in the nation, it said.
Taoyuan, with 34 industrial parks, tops other special municipalities in both industrial land supply and demand, consistent with its status as Taiwan’s manufacturing hub, Colliers said.
Industrial land deals in Taoyuan amounted to NT$158.7 billion from 2018 to the first half of this year, driven by reshoring of manufacturing facilities previously in China in the wake of US-China trade frictions, it said.
Hsinchu, Taichung, Tainan and Kaohsiung also benefited from supply chain realignment and capacity expansions of major local tech firms, it added.
By value, industrial plots in New Taipei Industrial Park (新北產業園區) ranked as the most expensive at NT$950,000 to NT$1.1 million per ping (3.3m2), it said, adding that Tucheng Industrial Park (土城工業區) and Hwa Ya Technology Park (華亞科技園區) tied for second place at NT$550,000 to NT$600,000 per ping.
Linkou Gong’er Industrial Park (林口工二工業區) was in the third place at NT$450,000 to NT$500,000 per ping, Colliers said.
It is no longer possible to find industrial plots valued at below NT$100,000 per ping anywhere in Taiwan, it said.
Industrial output at the Southern Taiwan Science Park (南部科學園區) hit NT$458.4 billion in the first four months of this year, surpassing that at Hsinchu Science Park (新竹科學園區) and Central Taiwan Science Park (中部科學園區), after semiconductor equipment supplier ASML Holding NV, chipmaker United Microelectronics Corp (聯電) and Applied Materials Taiwan added a presence, it said.
The southward migration of property funds would continue, thanks to a lack of land supply and increasing unaffordability in northern Taiwan, it said.
EXPANDING: WT Microelectronics Co distributes more than 10,000 products to Asian countries, but hopes that acquiring Future Electronics will expand its global reach Semiconductor component distributor WT Microelectronics Co (文曄) plans to fully acquire Canadian rival Future Electronics Inc in a US$3.8 billion deal, the company said yesterday. If approved by regulators in Taiwan and abroad in the first half of next year, the transaction would be the largest since Micron Technology Inc absorbed DRAM chipmaker Inotera Memories Inc (華亞科技) for NT$132.6 billion in 2016. WT Microelectronics expects the deal to expand its reach to the US and European markets while broadening its product offerings and customer coverage, as both companies complement each other in terms of customer bases, product portfolios and geographical deployments, it
soft landing: The US’ rate-setting FOMC finds itself in a difficult situation as it seeks to address inflation through interest rate hikes while avoiding a recession The US Federal Reserve is widely expected to hold interest rates steady on Wednesday after a summer of mixed economic data, while leaving the door open to another hike if needed. The Fed has raised interest rates 11 times over the past 18 months, lifting its key lending rate to a level not seen for 22 years as it tackles inflation still stubbornly above its long-term target of 2 percent. Analysts and traders broadly expect the US central bank to hold rates steady on Wednesday in order to give policymakers more time to assess the health of the world’s largest economy. “We think
AI TREND: TSMC has been rapidly expanding capacity to meet a spike in demand for advanced packaging services, but still expects supplies to be tight for 18 months Arizona is in talks with Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) about advanced chip packaging, state Governor Katie Hobbs said yesterday, which is crucial for the manufacturing of artificial intelligence (AI) chips. TSMC, which is building a US$40 billion chip factory in the US state, has not announced plans to build facilities for advanced chip packaging in the US. Advanced packaging processes stitch multiple chips together into a single device, lowering the added cost of more powerful computing. “Part of our efforts at building the semiconductor ecosystem is focusing on advanced packaging, so we have several things in the works around that
At a sprawling South Korean arms factory on Friday, a high-tech production line of robots and super-skilled workers were rapidly churning out weapons that could, eventually, play a role in Ukraine. Since the Russian invasion last year, the Hanwha Aerospace factory in the southern city of Changwon has expanded production capacity three times, workers told reporters, as South Korea ramps up arms exports while traditional behemoths like the US struggle with production shortages. Longstanding domestic policy bars Seoul from selling weapons into active conflicts, but even so it signed deals worth US$17.3 billion last year, including a US$12.7 billion agreement with NATO
RSS