Taiwan real estate transaction volumes hit 5-year lows

Property investments plummeted by 60% in Q3 2023.

The market momentum in Taiwan’s real estate sector turned weak in the third quarter of 2023 with transaction volumes recorded at NT$15.4 billion, down 72% QoQ and 60% YoY, the lowest level in the past 20 quarters, according to a Savills report. 

“In terms of property types, industrial offices showed a stable demand accounting for 53% of quarterly transactions, around NT$8.2 billion, followed by factories, accounting for 31%. Demand for office upgrades from technology companies in metropolitan areas fueled sales as several industrial office development projects sold out before completion, especially for development projects in New Taipei City,” the report said.

Here’s more from Savills:

In addition to technology companies, local food and restaurant chains turned active in factory acquisitions this quarter to accommodate central kitchens and cold chain logistics by acquiring factories in northern Taiwan for a total of NT$2.7 billion given the recovery of domestic consumption and the growth of the food and beverage industry. Even though most technology and manufacturing companies remained cautious about spending, prices of industrial land continued to rise. Buyers with rush orders are willing to pay more, causing sellers to stand firm on pricing. 

In the land market, buyers’ attitudes are more diverse. While some developers are releasing land on to the market for sale, land auctions held by local governments received positive feedback which led land transaction volumes in Q3 to increase by 29% QoQ to NT$30.6 billion. Looking forward, some owners of both land and commercial properties will consider selling non-core assets to raise capital by the end of the year, which might raise market activity in the fourth quarter.