4Q23 Taipei Commercial Real Estate Market Report

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.

Market Summary

• 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.