Major commercial property transactions in Taiwan were lackluster in the first six months of this year, compared with the strong residential market, due to a high comparison base over the same period last year, property broker Savills Taiwan (第一太平戴維斯) said yesterday.
Commercial property deals of more than NT$300 million (US$9.23 million) totaled NT$65.8 billion in the first half of this year, suggesting a 10 percent retreat from a year earlier, due mainly to an unfavorable comparison base linked to the liquidation sales of buildings owned by a real-estate investment trust (REIT).
The Shin Kong No. 1 REIT (新光一號) sold its six buildings in Taipei for NT$30.7 billion in the second quarter of last year.
Photo: Hsu Yi-ping, Taipei Times
Lingering inflation and restrictive monetary policy helped weigh on the commercial segment of the real-estate market, unlike residential properties that have benefited from favorable lending terms and wealth inflation induced by stock rallies at home and abroad.
Office buildings appeared to be the most in demand, generating NT$23.7 billion of the deals, or 36 percent, Savills Taiwan said.
Tatung Co (大同) sold an old office building in Taipei’s Daan District (大安) for NT$13.13 billion, equivalent to NT$15.26 million per ping (3.3m2) for the land on which the buyer group indicated it plans to build a luxury apartment complex after securing more nearby plots, it said.
Rich Development Inc (力麒建設) sold its headquarters to an institutional buyer for NT$1.28 billion and an individual investor acquired an office building near Yuanshan MRT Station for NT$1.8 billion, it said.
The deals reflected keen interest in existing office buildings by investors seeking future value gains, Savills Taiwan said.
By contrast, corporate buyers prefer presale or newly completed office buildings that can better meet self-occupancy and energy conservation needs, as well as enhance their working efficiency, it added.
Industrial properties are also popular, driving a sizeable NT$17.5 billion of the transactions, the broker said.
I-Hwa Industrial Co (怡華實業) bought an old plant in New Taipei City for NT$3.1 billion, Sigurd UTC Corp (矽格聯測) purchased a used plant in Hsinchu City for NT$1.68 billion and Delta Electronics Co (台達電) acquired two buildings in Taipei’s Neihu District (內湖), it said.
Property developers emerged as the most active buyers, pouring NT$21.3 billion into the commercial property market so far this year, followed by technology firms at NT$16.2 billion, Savills Taiwan said.
Developers are buying old buildings to replenish their land holdings, while semiconductor firms are expanding their research and development capacity as a result of a boom in demand for artificial intelligence products, the broker said.
After several years flying high as Asia’s best Nvidia Corp proxy, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is increasingly vying with other artificial intelligence (AI) stocks for investor attention. Stock traders are chasing a wider array of beneficiaries as mainstream usage of AI creates demand for hardware beyond the most-advanced chips TSMC makes for Nvidia. Subthemes from the deepening memory crunch to advances in robotics are also luring bids. At the same time, investment caps on single stocks are pushing funds to diversify, while retail investors long familiar with TSMC through its US depositary receipts are being offered a broader set of
TECH RELIANCE: Growth is increasingly reflecting an unequal K-shaped distribution, where technology sectors outperform and other industries struggle, an expert said Standard Chartered Bank has significantly raised its forecast for Taiwan’s economic growth to 9.5 percent this year, up from 7.6 percent previously, citing surging artificial intelligence (AI) demand driving exports, semiconductor production and investment. The upgrade reflects a sustained AI supercycle that continues to fuel demand for advanced chips and technology infrastructure, which form the backbone of Taiwan’s exports, the bank said in a report this week. “We raise our 2026 growth forecast to reflect a much stronger-than-expected first-quarter GDP figure,” Standard Chartered senior economist for greater China and Asia Tommy Wu (胡東安) said in the report. Driven largely by a 35.3 percent
UNDER MICROSCOPE: Taiwan detained three people who allegedly conspired to buy servers in Taiwan and export them using fraudulent documentation, prosecutors said Nvidia Corp chief executive officer Jensen Huang (黃仁勳) on Saturday urged Super Micro Computer Inc to tighten up on compliance after Taiwan detained three people this week for allegedly making fraudulent declarations about artificial intelligence (AI) servers made by its US partner. The development marked the nation’s first crackdown on semiconductor smuggling, which grew after the US slapped restrictions on exports of high-end chips such as Nvidia AI accelerators to China. Nvidia is “rigorous” in explaining regulations to all of its partners, Huang told reporters after arriving in Taipei. “Ultimately Super Micro has to run their own company,” he said in response to
Two of Taiwan’s international carriers, Starlux Airlines Co (星宇航空) and EVA Airways Corp (長榮航空), have retained the five-star airline rating awarded by international airline review organization Skytrax. Starlux was awarded the distinction for a second consecutive year, while EVA Air received it for the 11th straight year, Skytrax said in statements released yesterday and on Thursday last week, respectively. The five-star rating is considered one of the airline industry's highest honors and is awarded following professional audits of airline product and frontline service standards, Skytrax said. The ratings are based on in-depth assessments using unified global quality standards rather than customer review scores
RSS