Growth of Office Rental May Slow in Taipei Next Year
2011/10/03 | By Judy LiTaipei, Oct. 3, 2011 (CENS)--Taipei's office rental rose a quarterly 0.25% to an average of NT$67.2 or US$2.24 per square foot a month in the third quarter, with office vacancy falling 1.18% to 13.64%, according to the Taiwan branch of Jones Lang Lasalle (JLL), a real estate consultant.
Y.H. Wu, vice president of JLL Taiwan, predicts that the office rental uptrend in Taipei may slow next year as some multinational enterprises plan to suspend operation expansions in Taiwan next year due mainly to the unstable global market due to the European debt crisis and gloomy economic prospect of the U.S.
In the third quarter the transaction value of commercial offices in Taipei totaled NT$51.129 billion (US$1.7 billion) for a whopping annual growth of 151% to set the highest ever recorded.
Wu said that the transaction value and volume of commercial properties have soared two to three times over the past five years and the net absorption of leased offices is estimated to rise by 2%-3% to 828,000-900,000 square feet this year to a new five- year high.
| AverageRental of Grade-A Offices in Taipeiin Q3 | ||||
| District | Monthly rental (NT$/per sq.ft.) | Quarterly growth (%) | Average vacancy rate (%) | Quarterly growth (%) |
| Xinyi District | 76.19 | 0.4 | 18.61 | -1.57 |
| Tunhua N. Rd. | 64.19 | 0.0 | 14.23 | -0.61 |
| Tunhua S. Rd. | 65.56 | 0.55 | 6.47 | -0.51 |
| Non core commercial area | 52.69 | -0.3 | 10.84 | -1.54 |
| Overall area | 67.17 | 0.25 | 13.64 | -1.18 |