Both sellers and buyers remained conservative in the face of economic, financial, and housing policy uncertainties.

• The Taiwan central bank announced another half-point interest rate hike at the end of Q1/2023, bringing the benchmark interest rate to 1.875%, and the average mortgage interest rate close to 2%.
• Market sentiment turned gloomy, leading investors to adopt a wait-and-see approach. The total transaction volume of commercial real estate in Q1/2023 was NT$14.5 billion, down 69% YoY. The land transaction value totaled NT$16.1 billion, reflecting a 70% YoY decline.
• Factories and industrial offices were the major transaction types this quarter, accounting for over 70%. Technology companies emerged as the primary buyers.
• The required yield from property investment for insurance companies has been raised to 2.845%, impacting their investment momentum, and they only invested NT$390 million in real estate this quarter.
• Developers slowed down their land acquisition activities and are adjusting their strategies to land disposal or towards joint construction, redevelopment projects, or joint MRT development projects.