The quarterly report indicates that Taipei's total stock remained unchanged for the eighth consecutive quarter. Taipei office market is likely to follow an upward trend on the back of keen demand for quality office space.
Investment Market - Quality office will continue to attract institutional investors
Taipei's property investment market was fairly active in the third quarter of 2007, with activity concentrated in the Neihu Technology Park. The combined value of the quarter's investment sales in the Park amounted to approximately NT$8 billion. Shin Kong Life Insurance purchased two buildings from BenQ as well as an under-construction building from Huaku Construction Co., Ltd for NT$6.54 billion in July.
The robust demand for properties within the Park has showed investor's buoyant confidence in the prospects of the area. Currently viewed as a decentralized area, Neihu is likely to become a significant office submarket in Taipei as the City Government is formulating the plan of Grater Neihu, which will add another 175 hectares of land to the existing Neihu Technology Park.
In the third quarter of 2007, Nanshan Life Insurance, a subsidiary of AIG, bought several floors and parking space of Chong Sheng Building from Yuanta Financial Holdings for roughly NT$3.43 billion. Another notable transaction was the purchase of Meifu Building along Jiang Guo North Road by CITADALE, a private fund from Singapore, for NT$5.2 billion. The building purchased from Mei Fu Construction Co., Ltd is under construction and slated to join the market in 2008.
As the Taipei office market has been following an upward trend, it is expected that institutional investors will keep close eyes on quality space with good location and that the foreign/local insurance and investment companies will continue to dominate the property market for some time to come.
Leasing Market - Office occupiers are drawn by quality buildings under construction
The third quarter saw the total stock of office space remain the same for the eighth consecutive quarter as no new supply was introduced this year in Taipei's CBDs except the Yuanta Core Pacific Securities Headquarters reserved for self-use.
The next prominent office space coming on stream is the Meifu Building, which is scheduled for completion in the first quarter of 2008. The structure, however, will have limited effects on the office leasing market for most of the total area being pre-committed by AEGON Life Insurance under a 15-year contract.
After experiencing market stagnation with respect to space take-up in the second quarter of 2007, the Taipei office market witnessed an increase of approximately 200% q-o-q in net take-up, reflecting a total of 8,762 ping occupied in the period under review. In accordance with the trend of relocating for upgrade reasons, Grade A office market contributed nearly 5,000 ping to the buoyant take-up this quarter.
The largest leasing transactions in terms of area included Hontai Life Insurance's 2,128-ping relocation to Hung Tai Century Building located in the Minsheng-Dunhua Area, Bank of America's occupancy of 1,414 ping in Taipei 101 in Xinyi-Jilong Area and 1,341 ping of take-up in the President International Building by AIG General Insurance, which also resides in XJA. The robust demand for Taipei's office space had consequently compressed overall vacancy rate to 8.13% at the end of the third quarter.
Related Articles
Foreign Investors Continue to be Active in Asian Real Estate Investment Markets
By: Wantanee Khamkongkaew | 23/12/2007 | Real Estate
Since July 2007, the U.S. sub-prime mortgage problems and the increases in credit spreads over government bonds have triggered concerns about a global credit crunch, and caused global stock market volatility.
Living in Hong Kong Apartments
By: Wantanee Khamkongkaew | 14/11/2007 | Real Estate
An apartment in Hong Kong is a self contained residential unit, which is mostly a part of a large building or property. For many reasons, both expatriates and natives choose to live in Hong Kong apartments. Perhaps the most important reasons are convenience and lifestyle it renders.
Overall Demand for Office Space in Asia
By: Wantanee Khamkongkaew | 23/12/2007 | Real Estate
Asian office markets generally sustained their positive momentum in the third quarter of 2007. Supply of Grade A office space remained tight in the CBD areas of Hong Kong, Singapore and Ho Chi Minh City, with vacancy rates hovering at 5% or lower.
Relief In Sight For Hard-Pressed Occupiers As Government Bolsters Supply
By: Wantanee Khamkongkaew | 21/11/2007 | Real Estate
In spite of recent uncertainties in the financial markets, there was no discernible dampening of demand for office space in Singapore. Whilst demand remained broadbased with sectors such as energy, printing, IT, insurance and foreign law firms taking up office space in the third quarter.
Condominium Boom in Hong Kong
By: Wantanee Khamkongkaew | 23/12/2007 | Real Estate
Whether you are a permanent resident or a tourist to the city, Hong Kong boasts of a continuum of accommodation options, according to your taste, lifestyle, and budget.
Non-Prime Market Recovery Began A Year Ago
By: Wantanee Khamkongkaew | 21/11/2007 | Real Estate
In a study of the take-up of new non-landed projects in non-prime areas, The mid-tier and mass market projects turned in strong sales volume since a year ago in 2006. Until now, the market had perceived that these segments trailed the high-end market in their recovery, and had begun to recover only in early-2007, in terms of volume and price.
Hong Kong Real Estate as an Investment
By: Wantanee Khamkongkaew | 23/12/2007 | Real Estate
Many people from across the globe are now getting attracted to invest in real estate here. Real estate in Hong Kong is regarded as one of the priciest in the world.
Renting Apartments in Singapore Can Be A Good Decision
By: Wantanee Khamkongkaew | 27/11/2007 | Real Estate
Apartments have a big place among the accommodation facilities available in Singapore. The decision to rent an apartment in Singapore can be a good decision. If you are planning for a short stay in the vibrant city of Singapore then it is better to go for an apartment rental.
Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
Square foot sales price
By: tim | 12-07-2008
What is the average square foot price of sold homes for 2008 in Piedmont, CA 94611?
I would like to know if 293 beverly cout is for ...
By: RG | 12-07-2008
i would like to know if 293 beverly cout is for sale
For sale by owner
By: juanita | 12-07-2008
how can I find information about selling a house by my self without paying "flat fees"or any other fee,or having to buy books that'll "guide me through the proccess"?
Forclosure list
By: ED | 11-07-2008
where can I obtain a free list with out paying
There is a large piece of property in wilson co ...
By: Barbara | 10-07-2008
there is a large piece of property in wilson co. texas that i need to know who owns it. a family by the last name of millard lived there between the years of 1921 and 1925. the property was , i think, owned by the brown family before that. the millard grandchild would like to know who now holds the deed to the property.
Tax lien sale
By: midnites1 | 10-07-2008
How do I find listings of houses that are for sale for back taxes in st. louis, mo
Q&A Powered by:
Latest Real Estate Articles
Find Exotic Range of Villas and Apartments in Goa
By: JumpHigher | 26/07/2008
The beach attraction of Goa has extensive since been a favorite holiday destination among tourists. For most of the years, Goa is bathed in sunshine and it is fringed with acres of smooth sands and tropical warm waters. Goa is a muddled conflict of the Indian and European cultures. Although well-known for its serene beaches and calm vibe, Goa is a mixture of luxuriant countryside, tranquil townships and active markets. It is a perfect place for party lovers, as it you will find beach parties an
Holiday Homes – Stimulating Retreats for Tired Souls
By: JumpHigher | 26/07/2008
Goa is also known as ‘pearl of the orient’. It is situated in the south western coast of the India. It is blessed with naturally beauty with an excellent coordination of vast expansive beaches, fertile plains and forested hills. Goa is the hottest spot for holidays. This place is the major tourist attraction as the climate is favorable throughout the year. It attracts millions of tourists because of its beaches, resorts and its scenic beauty.
TIC: How is the Real Estate Community Involved?
By: Kathryn Landry | 26/07/2008
With the demand of prime properties worldwide, real estate communities are boasting of profits and capital gains when it comes to their acquired real estate. But despite the knowledge of these investors in the business, there is a way to consolidate as many properties as they can to maximize their profits.
Six Reasons Why Fixer-uppers are the Key to Financial Freedom
By: Sal Vannutini | 26/07/2008
Second only behind real estate development, fixer-uppers and renovating properties are one of the absolute best ways to turn a profit and increase your overall worth. Finding homes and apartment complexes or condominiums that are in need of repair, but still structurally sound, of course, is an excellent way to begin making money faster than you ever thought possible.
Debunking the Four Most Common Myths About Fixer-uppers
By: Sal Vannutini | 26/07/2008
Perhaps you have a bit of skepticism when it comes to fixer-uppers and making money, as after all, if it's that lucrative of a process, why don't more people do it? While a precise answer to that has yet to be discovered, there are several fallacies, myths, or excuses in some cases, about the entire subject, and we'll debunk four of them right here and now.
Know the Facts About Apr Rate - Annual Percentage Rate Loan
By: Bryan Burbank | 25/07/2008
When applying or searching for a loan one of the most important components o the loan is the APR rate which is the Annual Percentage Rate. This is the rate of interest that you will be paying back on the money that you borrow. It is important that when looking for a loan that you do a comparison of this APR rate because the difference in even a fraction of a point can mean big savings to you over the life of the loan.
The Pros and Cons of Living in New Jersey
By: Art Gib | 25/07/2008
Are the costs of living in New Jersey worth the comforts? Decide for yourself by reading the following article.
Buying Properties - 3 Things That You Need To Do Before Buying Properties
By: Cheow Yu Yuan | 25/07/2008
Are you intending to buy a property in the near future? If you intend to, then there are things that you need to prepare before you buy a property. Today, if you flip through your local newspaper or browse through the different websites online, you can see that there are always new properties for sale listings being put up by sellers.
More from Wantanee Khamkongkaew
Expats in Bangkok and Their Living Requirements
By: Wantanee Khamkongkaew | 25/03/2008 | Real Estate
About 25% of the city's population is expatriates. Many of them are working, while some are retired or tourists on a long term vacation. Majority of the expats in Bangkok are westerners including Americans, British, and Germans. Most of them primarily work in foreign-owned and managed companies.
How to Invest in Asian Property?
By: Wantanee Khamkongkaew | 20/03/2008 | Real Estate
The steady downfall of the American housing market has forced the investors to think about the large global market. Among the global investments the Asian property market will continue to prosper for the next few years. Asia is becoming more and more investor friendly
Asia Property - The Best Investment Opportunities
By: Wantanee Khamkongkaew | 19/03/2008 | Real Estate
In the recent past the Asian market has become more and more biased towards foreign investment. Lot of countries in the region have completely removed their unnecessary restrictions on foreign investors. This attracted more investment in the property market as well. As a result there was a real boom in the property section of the market in 2007.
A Year of Growth for the Industrial Property Market
By: Wantanee Khamkongkaew | 19/03/2008 | Real Estate
The year of 2007 has been an unprecedented year for the industrial property market. The rentals and occupancy rates for all kinds of industrial space indicate the extreme demand which was present. A number of business park sites were sanctioned, a fourth industrial REIT began functioning and 10 industrial sites were allotted in 2007.
The Hong Kong Property Market Review and Forecast
By: Wantanee Khamkongkaew | 19/03/2008 | Real Estate
2007 represents a unique year for the Hong Kong economy. The year witnessed a proportional increase in growth as the year moved forward. The major reason behind the economic reversal is the domestic demand as private consumption and investment expenditure continued to increase.
Commercial Real Estate Investment in Korea
By: Wantanee Khamkongkaew | 16/03/2008 | Real Estate
Korea is one of the prime property investment destinations in Asia Pacific. Not only is the country's property market transparent, but the economy itself is very dynamic, offering much scope for growth and development.
International Property Agent in Thailand
By: Wantanee Khamkongkaew | 16/03/2008 | Real Estate
Property market in Thailand is booming. One of the most famed destinations in South-East Asia, Thailand is a highly sophisticated tourist spot with a universal appeal. For many reasons, investing in Thai property market is regarded as beneficial.
Real Estate Buying & Selling Guide in Singapore
By: Wantanee Khamkongkaew | 15/03/2008 | Real Estate
If you are buying a private property or housing development board (HDB) unit in Singapore, ensure that you understand all the pitfalls before you sign the deal. That would help you avoid getting into legal or financial tangles during and after the transaction.
Finance 
