Savills

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Taiwan Investment - Jun 2021

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Contacts & Related Research

Government rolls out property cooling measures

Insurance companies and developers are active in the property investment market, pushing total transaction volumes in Q1 to NT$48.5 billion.

  • The commercial property market remained active in Q1/2021, posting a total volume of NT$48.5 billion, up 129% YoY and 52% QoQ.
  • The largest investment deal in Q1 was the sale to a local developer of Far Eastern Sogo Dunhua Store, a luxury department store in Taipei, for NT$13 billion via a share deal.
  • Two other mega deals were concluded by Shin Kong Life, including China Development Financial HQs (NT$9.3 billion) and Raint Plaza (NT$5.6 billion).
  • Strong demand for industrial property is unchanged with quarterly transacted volumes growing by 10% QoQ. Asking prices for industrial land in northern Taiwan have witnessed a rapid growth.
  • The result of property market cooling measures and tightening mortgage availability is unclear, even though land transactions volumes declined modestly in Q1.
  • Several developers have announced that they are entering the industrial property market, focusing on the industrialoffi ce sector

Property cooling measures will focus on tightening mortgage availability, raising capital gains tax, and improving market transparency, however, we expect that the impact on demand from end-users and long-term investors will be limited in a low interest rate environment.

Erin Ting, Savills Research
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