2Q22 Taipei Office Market Report
Office space continued to be insufficient, with rent of prime Office increasing by 4.4% year-on-year to almost NT$3,000
- Zac Li
2022 Q2 Office Leasing Market Summary:
In the second quarter of 2022, the office market continued the trend of the strong demand. The average monthly rent of prime office reached NT$2,953 per ping, up 0.71 percentage points from the previous quarter and 4.4% over the same period last year. Due to the limited supply in Taipei CBD, the demand side has gradually turned its attention to the Neihu and Nangang District. The overall market remains undersupplied, with the overall vacancy rate remaining at 2%.
Because of the ESG considerations, the demand for high-quality office space is increased. Therefore, it can be seen that landlords have begun to renew their offices to meet green building certifications such as LEED and WELL to enhance the competitiveness of their properties in the market.
Global Market Overview Summary:
The office market is recovering, with leasing transactions up 36% year-on-year as the epidemic has stabilized and the office market has revived. However, there is still a -24% lower than the nearly decade-high of 2019.
Investment Market Summary:
The amount of investment this quarter reached NT$10.8 billion, down 61% from the same period last year. However, it is estimated that if the epidemic slows down in the second half of the year, the annual transaction volume will still rise to 100 billion.
The economic situation is stable, and the purpose of trading is mostly for self-use and rigid demand
The technology and manufacturing sectors continued to invest in commercial real estate, accounting for 38% of investment
Office and industrial properties accounted for over 80% of the total transaction value
