3Q22 Taipei Commercial Real Estate Market Report
The market supply is still scarce, and the vacancy rate remains low.
- Zac Li
- Josh Hsu
2022 Q3 Office Leasing Market Summary:
In the third quarter of 2022, the demand of office market remained strong. The average monthly rent of prime office reached $2,958 per ping, an increasement of 0.2% over the previous quarter and 3.8% from the same quarter last year. Last quarter, due to the peak of the epidemic, the office relocation plan was slightly delayed, but the demand of quality office space still exceeded the supply. Consequently, the overall vacancy rate remained at 2%.
Jones Lang LaSalle estimates that due to the limited supply of high-quality commercial offices in the market, the average rent of prime offices has the opportunity to break through the all-time high to reach NT$3,000 per ping in the next quarter amid solid and strong demand.
Global Market Overview Summary:
The recovery of the commercial market slowed down, with leasing transactions up 4% year-on-year in this quarter. Nevertheless, the transaction volume growth remained positive. Due to the strong interest rate hike by the Federal Reserve, market uncertainty has increased, and diversified investment has become the mainstream of the market.
Investment Market Summary:
Investment in 3Q22 reached NT$30.1 billion, an increase of 26% over 3Q21. In addition, the transaction volume of Taipei City accounted for 61% of the total investment, reaching NT$18.5 billion. It is estimated that the annual transaction volume can reach 100 billion.
The economic situation is stable, and the purpose of trading is mostly for self-use and rigid demand
Rigid demand buying in the technology sector continues
The real economy drove office and industrial properties to account for more than 80% of the total transaction value
