Taiwan commercial property transactions grow 22% to US$1.23b in Q3

The industrial sector accounted for 70% of the total transactions.

The total commercial property transaction volumes in Taiwan increased 22% to TWD34.5 billion (USD1.23 billion) in Q3, thanks to the country’s effective management of the pandemic. 

According to Colliers, the momentum in industrial assets remained strong – helped by YoY export growth of 31.5% in July – contributing 70% of total transactions for the quarter. 

Here’s more from Colliers:

Institutional investors continued to pursue income-producing properties, particularly in the office and industrial segments. And because en-bloc office assets with rental income are tightly held in Taipei, insurance companies were seen broadening their radar for real estate investment to secondary cities or strata-titled assets. Low interest rates and abundant capital continued to boost transactions of development sites as well as existing buildings with redevelopment potential. 

Stepping into Q4, market momentum is expected to continue driven mainly by improving business sentiment. The government further raised its 2021 GDP growth forecast to 5.88% from a previous estimate of 5.46%. While the expansion needs of end-users will likely persist investors and developers may be keen to chase income-producing properties and development/redevelopment opportunities in Q4. Industrial, office, and development sites are expected to lead the market