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.
PATENTS: MediaTek Inc said it would not comment on ongoing legal cases, but does not expect the legal action by Huawei to affect its business operations Smartphone integrated chips designer MediaTek Inc (聯發科) on Friday said that a lawsuit filed by Chinese smartphone brand Huawei Technologies Co (華為) over alleged patent infringements would have little impact on its operations. In an announcement posted on the Taiwan Stock Exchange, MediaTek said that it would not comment on an ongoing legal case. However, the company said that Huawei’s legal action would have little impact on its operations. MediaTek’s statement came after China-based PRIP Research said on Thursday that Huawei filed a lawsuit with a Chinese district court claiming that MediaTek infringed on its patents. The infringement mentioned in the lawsuit likely involved
Taipei is today suspending work, classes and its US$2.4 trillion stock market as Typhoon Gaemi approaches Taiwan with strong winds and heavy rain. The nation is not conducting securities, currency or fixed income trading, statements from its stock and currency exchanges said. Authorities had yesterday issued a warning that the storm could affect people on land and canceled some ship crossings and domestic flights. Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) expects its local chipmaking fabs to maintain normal production, the company said in an e-mailed statement. The main chipmaker for Apple Inc and Nvidia Corp said it has activated routine typhoon alert
GROWTH: TSMC increased its projected revenue growth for this year to more than 25 percent, citing stronger-than-expected demand for AI devices and smartphones The Taiwan Institute of Economic Research (TIER, 台灣經濟研究院) yesterday raised its forecast for Taiwan’s GDP growth this year from 3.29 percent to 3.85 percent, as exports and private investment recovered faster than it predicted three months ago. The Taipei-based think tank also expects that Taiwan would see a 8.19 percent increase in exports this year, better than the 7.55 percent it projected in April, as US technology giants spent more money on artificial intelligence (AI) infrastructure and development. “There will be more AI servers going forward, but it remains to be seen if the momentum would extend to personal computers, smartphones and
Catastrophic computer outages caused by a software update from one company have once again exposed the dangers of global technological dependence on a handful of players, experts said on Friday. A flawed update sent out by the little-known security firm CrowdStrike Holdings Inc brought airlines, TV stations and myriad other aspects of daily life to a standstill. The outages affected companies or individuals that use CrowdStrike on the Microsoft Inc’s Windows platform. When they applied the update, the incompatible software crashed computers into a frozen state known as the “blue screen of death.” “Today CrowdStrike has become a household name, but not in