Com­mer­cial prop­erty mar­ket slows in Q3 says con­sul­tancy

The China Post - - LOCAL - BY JOHN LIU

Trad­ing of com­mer­cial real es­tate — of­fices and man­u­fac­tur­ing fa­cil­i­ties — to­taled NT$7.5 bil­lion in the third quar­ter, sub­stan­tially lower than the NT$23 bil­lion av­er­age recorded over the past decade, Col­liers In­ter­na­tional Tai­wan Ltd ( ) said yesterday.

Trad­ing of com­mer­cial prop­er­ties was even lower in the first and sec­ond quar­ter, at NT$6.9 bil­lion and NT$4.7 bil­lion, re­spec­tively, the prop­erty con­sult­ing com­pany re­ported.

The amount of land trans­ac­tions in the third quar­ter to­taled NT$25.5 bil­lion, also lower than the decade av­er­age of NT$40.2 bil­lion by a great dis­tance.

The num­ber would have been even grim­mer had Tai­wan Life (

) and CTBC Life ( ) not jointly put down NT$15 bil­lion to pur­chase sur­face rights for a piece of land be­long­ing to Tai­wan Fer­til­izer Co. ( ).

The slow ac­tiv­ity in the com- mer­cial prop­erty and land mar­kets re­flects the “wait-and-see” stance adopted by the ma­jor­ity of po­ten­tial buy­ers, said Col­liers In­ter­na­tional Tai­wan’s man­ag­ing di­rec­tor An­drew Liu ( ), who added that the mar­ket’s bot­tom is “un­fath­omable” at this point.

With the stag­nant econ­omy and the ram­i­fi­ca­tions of the up­com­ing elec­tions, the com­mer­cial mar­ket may stay cool for a while, Liu pre­dicted.

Against this back­drop, do­mes­tic de­vel­op­ers are think­ing about whether to con­struct apart­ments or of­fice build­ings that can of­fer a sta­ble rental in­come. Some com­pa­nies have sought the as­sis­tance of Col­liers In­ter­na­tional in sur­vey­ing the mar­ket, the prop­erty con­sult­ing com­pany said.

Also, some de­vel­op­ers are con­sid­er­ing selling off lands. They are now strapped for cash as they find it dif­fi­cult to get rid of prop­er­ties in the mar­ket while still hav­ing the obli­ga­tion to make loan pay­ments, Liu said.

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