COLLIERS RADAR COMMERCIAL PROPERTY | RESEARCH | TAIPEI | 8 APRIL 2020 Eilleen Liang Director | Research | Taiwan +886 2 8722 8601
[email protected] OPPORTUNITIES ACROSS TAIWAN A review of 2019’s investment trends sheds light on Taiwan’s six metros. COLLIERS RADAR COMMERCIAL PROPERTY | RESEARCH | TAIPEI | 8 APRIL 2020 Insights & Recommendations Annual land Commercial Although Taiwan’s economy has been sales hit NTD276.5 property affected by the US-China trade war in 2019, it also pushed manufacturing and billion in 2019, transactions totaled technology sectors to relocated partial increasing NTD138.6 billion operations back to Taiwan, increasing the demand for office, industrial office and 49.6% YOY up 70.0% YOY factories. Coupled with the low interest rates, the investment amount hit a record high in 2019. Looking forward in 2020, we Top destination for Most stable city for think uncertainties such as outbreak of COVID-19, US-China tensions, and the land investment- commercial cross-strait relations will likely impact the Taichung City property income: investment momentum especially in H1 2020. > Office: We still think the office sector is Taipei City the best opportunity for investors. Though leasing demand will likely > In 2019, land and commercial property investments grew significantly. The total sales value reached slowdown in H1 2020, with latent NTD415.1 billion (USD13.4 billion), a 56% increase compared to 2018. This is also the record high demand and a lack of supply we expect since Colliers survey started in 2007. rents and vacancy to remain stable. > Taiwan’s six metros are destinations both for investors and developers, with a total commercial > Industrial: We recommend owner- property sales value of NTD129.6 billion (USD4.2 billion), 94% of Taiwan’s total.