'Taipei 101' Expected to Raise Office Rental for 2008

Taipei, Jan. 9, 2008 (CENS)--The monthly office rental of "Taipei 101," the world's tallest skyscraper, is reportedly to be adjusted upwardly to NT$3,500 (US$106.06 at US$1 = NT$33) per ping (1 ping = 36 sq/ft) for the tenants of its upper floors this year, which is expected to cause office rentals for the buildings in neighboring areas to rise.

At the end of 2007, the average office rental in Hsinyi Project district, a recently developed financial circle in eastern Taipei, reached at NT$1,959 (US$59.36) per ping per month, exceeding for the first time the corresponding rental charged in the areas of Minsheng E. Rd. and Tunhua S. & N. Rd., the thriving business section in the city.

Liu Hsueh-lung, managing director at the Taiwan Branch of Colliers International Ltd., analyzed that Taiwan boasted stable economy for 2007 with estimated economic growth of 5.46% due mainly to strong foreign trade and private investments despite sluggish domestic consumer market. Nevertheless, the demand on leasing offices has been growing over the past two years in metropolitan Taipei and the upward trend is predicted to continue in the following three years.

Liu indicated that there are only six new Class-A office buildings in Taipei available for lease and, however, the demand for offices in such buildings is expected to keep rising in the city, so the rental of such offices is very likely to witness annual growth of 6%-7% for 2008 and 2009.

The statistics released by Colliers showed that the office rental in Taipei at the end of 2007 averages at NT$1,806 (US$54.73) per ping per month, edging up 1.68% from the corresponding NT$1,777 (US$53.85) recorded a year earlier. The growth seemed much lower than that posted by premium office buildings.