Commercial property market slows in Q3 says consultancy
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.