1Q23 Taipei Commercial Real Estate Market Report
Rent keeps increasing, with an average annual increase of 2% for grade A office; due to shortage of supply, the vacancy rate remains at a low level.
- Josh Hsu
2023 Q1 Office Leasing Market Summary:
In the first quarter of 2023, the average rent for Grade A office space increased by 2% compared to the same period last year, reaching NT$2,981 per ping per month.
Xinyi District is the largest contributor to rent growth. It is expected that the trend of rising rents will continue in the future.
From the second half of 2023, new supply in Xinyi would release. In terms of the upcoming new supply, the performance of absorption and the leasing momentum would be the key to determine whether the demand for high-quality office space would continue to be strong.
Global Market Overview Summary:
Uncertainty decreased the global real estate investment momentum.
Occupiers slowed down decision-making process and adopted more defensive strategies.
However, there is no shortage of capital to be deployed in real estate.
Investment Market Summary:
The transaction volume in commercial real estate in 1Q23 reached NT$12.8 billion, a decrease of 69% compared to 1Q22.
The land transaction volume in 1Q23 reached NT$18.1 billion, a decrease of 67% compared to 1Q23.
- Commercial real estate transactions were concentrated in the northern region throughout the year, particularly in Taipei City.
- Demand for self-used industrial office is still solid in Taipei.
- Due to the strong demand for self-use purpose, industrial land is main type of land transactions However, in 1Q23, the proportion of industrial land transactions decreased, because of few bids released, and the gap in price perception between buyers and sellers.
