Commercial property deals totaled NT$28.7 billion (US$882.29 million) last quarter, slumping 37 percent year-on-year, as global economic uncertainty and lingering credit controls in Taiwan chilled the market, Colliers International Taiwan (高力國際) said yesterday.
“Unclear US tariff policies are driving manufacturers to reassess their global presence and production base locations, with the possibility of postponing expansion or investment plans,” Colliers Taiwan senior research director Eilleen Liang (梁儀盈) said.
Owner-occupiers underpinned commercial real-estate deals during the January-to-March period, as companies such as Uni-President Group (統一企業), Micron Taiwan (美光), ASMedia Technology Inc (祥碩科技) and Wendell Industrial Co (穩得) bought properties to bolster their operations, the company said.
Photo: CNA
Micron Taiwan has purchased its third property for self-occupancy since August last year, it said.
Demand for capacity expansion and workspace upgrades was a key driver of factory and industrial office transactions, explaining why firms from the electronics, integrated circuit design and semiconductor sectors purchased properties, the company said.
As a result, factories and logistics warehouses were the most sought-after, accounting for NT$12 billion of deals, followed by industrial offices at NT$9.2 billion, it said.
Meanwhile, investment-focused activity was quiet, with no transactions from domestic life insurance companies at all, it said, adding that financial regulators had lowered the minimum return.
As for land deals, major Taiwanese developers continued to acquire land in popular locations, especially in southern Taiwan, the company said.
Farglory Land Development Co (遠雄建設) spent NT$13.6 billion to build up land stock in Kaohsiung, while JSL Group (甲山林) acquired land and old idle factories for development, it said.
Looking ahead, Colliers Taiwan said property investors should take time to re-evaluate their portfolios and bolster their resilience in dealing with market direction shifts.
As borrowing costs remain high, owner-occupiers would continue to dominate transactions of factories and industrial offices, the company said.
Companies would cautiously approach expansion plans and slow the decisionmaking process, which is unfavorable for property transactions, it said.
The central bank last month cut its forecast for the nation’s GDP growth to 3.05 percent for this year, and growing uncertainty linked to US tariffs might merit further revisions, the company said.
The US trade policy is rattling consumer and property market confidence across the world and would weigh on property investment in Taiwan, it said.
In related developments, construction loans last month stood at NT$3.43 trillion, or a 2.97 percent rise from a year earlier, marking the slowest advance since August last year, the central bank said yesterday.
The slowdown has to do with developers’ conservative attitude in dealing with the central bank’s credit controls, it added.
Likewise, house loans picked up from the lowest pace of 9.34 percent in nearly a year to NT$11.18 billion, as credit controls drove some buyers to the sidelines, it said.
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01