A stable economy will support the demand for offi ce space despite the signifi cant fall in leasing momentum.

• The Directorate General of Budget lifted its forecast for Taiwan’s economic growth in 2021 to 5.46%, the highest in 11 years. Rent relief is more common in the retail, catering,and hotel sectors.
• Total take-up remained below 1,000 ping with offi celeasing activity shrinking for four consecutive quarters.
• The overall vacancy rate fell slightly by 0.1 percentagepoint to 3% in Q2/2022 and rents stood at NT$2,990 per ping, up 0.1% QoQ and 1.3% YoY.
• Several leasing deals saw rent levels unchanged reflecting landlords more realistic rental expectations.
• As fast-rising construction costs led landlords to delay redevelopment plans, tenant demand for relocation or office acquisition decreased.
• The large amount of vacant space left by anchor tenants whorelocated to new buildings will put pressure on the Dunhua N. submarket., even though newly completed buildings havebeen entirely taken up.