Transactions of land for industrial use in Taiwan soar

06-Jun-2019 Intellasia | Focus Taiwan | 6:00 AM Print This Post

Transactions of land for industrial use for the first four months of this year jumped more than 160 percent from a year earlier, commercial real estate services and investment firm CBRE Group Inc. said Tuesday.

The soaring land purchases for construction of plants or office buildings for factory use in rural areas came at a time when more and more Taiwanese firms are returning to invest at home in a bid to offset the impact of higher operating costs in foreign markets, including China, the CBRE said.

In addition, slowing domestic demand in China and trade tension between the United States and China were also cited as reasons for Taiwanese firms returning home, which has boosted demand for land for industrial use.

Data compiled by the CBRE shows that transactions of land for industrial use during the January-April period totalled NT$12.8 billion (US$408 million), up 161 percent from a year earlier.

After including the sales of factories and office buildings used by factories in rural areas, transactions of industrial property for the four-month period rose 25 percent from a year earlier to NT$28.1 billion, according to the data.

The CBRE said that Taiwan’s transactions of land for industrial use over the past 10 years peaked at NT$46.8 billion in 2016 but fell to NT$26.9 billion in 2017 and NT$20.3 billion in 2018.

In the first four months of this year, sales momentum accelerated as more and more Taiwanese firms returned, according to the CBRE.

In 2018, transactions for factories and office buildings used by factories totalled NT$58.5 billion, up 88.1 percent from a year earlier on the back of returning Taiwanese firms, the CBRE data shows.

In the first four months of this year, transactions of total commercial property, including offices and shops in urban areas and industrial-use land, as well as factories and offices used by factories, hit NT$119.9 billion, up 71 percent from a year earlier, the CBRE said.

http://focustaiwan.tw/news/aeco/201906040016.aspx

 


Category: Taiwan

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