4Q23 Taipei Commercial Real Estate Market Report
2023 Recap and 2024 Outlook
- Jessy Yang
Office Leasing Market Summary
The esteemed Xinyi, long favored for its plethora of Grade A office spaces, has traditionally been the prefered choice for MNCs. However, in 4Q23, due to limited new supply and budget considerations, tenants are increasingly exploring alternative commercial districts, leading to a deceleration of rent growth.
In the 'Others' district, where a significant surge in new supply is anticipated, the trajectory of leasing activity over the next 3 years will be intricately tied to the appeal of lease terms and incentives extended to prospective tenants.
The leasing market in Nangang is swiftly maturing, characterized by the presence of expansive, new-generation buildings strategically positioned with excellent transportation connectivity. This positioning is expected to allure a growing number of technology industry tenants seeking modern and spacious office spaces.
In 2024, geopolitical conflicts, political uncertainty, and inflation management will shape the real estate market landscape.
The resurgence of international tourism is anticipated to drive transactions in the hotel sector, elevating occupancy rates and average room prices.
The maturation of AI product services is expected to increase global demand, potentially impacting transaction volumes in the technology industry and driving demand for office spaces and factories.
Land transactions remain subject to policy influences, with developers showing a preference for redevelopment methods like urban renewal.