Demand for industrial property from the technology industry is strong but investors remain cautious given the recent capital gains tax revision and an evolving pandemic situation.

• Market activity in the commercial property sector has slowed, and the closing dates of several public tenders were postponed when the COVID-19 alert was raised to Level 3 in mid-May.
• The commercial property market was active prior to the Level 3 announcement and transaction volumes hit NT$31.9 billion in Q2 and NT$82.4 billion in 1H, up 83% and 113% respectively.
• Demand from the technology industry is accelerating and the sector acquired a total volume of NT$15.7 billion in Q2, the highest level in recent years.
• The spike of local COVID-19 cases and the income tax revision as well as the lack of large-scale property available for sale led the market share of investment deals to drop from 50% to 30%.
• Developers are aggressively seeking development sites, acquiring a total of NT$61.9 billion worth of land this quarter, up 74% quarter-on-quarter (QoQ) and 116% yearon- year (YoY) respectively.
• Hotel transactions increased as several developers aimed to purchase en-bloc hotels or motels to expand their land inventory.