- By Crystal Hsu / Staff reporter
Property transactions for commercial real estate decrease by 37%
Commercial property transactions totaled NT$28.7 billion (US$882.29 million) last quarter, representing a steep 37% drop year-on-year. This market slump, as reported by Colliers International Taiwan, is directly linked to global economic anxiety and persistent credit restrictions in Taiwan, exacerbated by the unpredictable US tariff policies [1].
Eilleen Liang, senior research director at Colliers Taiwan, explained that the US policies are driving manufacturers to critically evaluate their global presence and potential production site locales. The possibility of postponing expansion or investment plans is not far-fetched, as uncertainty looms large over the future of international trade [1].
During the first quarter of 2025, owner-occupiers dominated commercial real estate transactions, as companies like Uni-President Group, Micron Taiwan, ASMedia Technology Inc, and Wendell Industrial Co purchased properties to fortify their operations [1]. Micron Taiwan even procured its third property for self-occupancy since August 2024 [1].
The need for capacity expansion and workspace upgrades propelled factory and industrial office transactions, with electronics, integrated circuit design, and semiconductor sector firms leading the way [1]. Consequently, factories and logistics facilities were the most sought-after assets, accounting for NT$12 billion in transactions, while industrial offices followed closely at NT$9.2 billion [1].
It's worth noting that investment-focused activity was scant, with no transactions from domestic life insurance companies, and financial regulators having curtailed minimum returns [1].
In land deals, major Taiwanese developers continued to snatch up land in preferred locations, particularly in southern Taiwan. Notable examples include Farglory Land Development Co and JSL Group [1].
Moving forward, Colliers Taiwan advises property investors to reassess their portfolios and be ready to adapt to potential market shifts. Elevated borrowing costs are expected to keep owner-occupiers at the forefront of factory and industrial office transactions, while companies may carefully deliberate expansion plans and prolong decision-making processes, which in turn could negatively impact property transactions [1].
In March, the central bank downgraded Taiwan's GDP growth forecast to 3.05% for 2025, with US tariffs-related unpredictability potentially justifying further revisions [1]. As the US trade policy continues to unsettle consumer and property markets across the globe, it will likely diminish property investment in Taiwan [1].
The construction loan volume last month reached NT$3.43 trillion, marking the slowest growth since August 2024, attributed mainly to developers' conservative approach to the central bank's credit controls [1]. House loans bounced back from a 9.34% low nearly a year ago, but credit restrictions may have forced some buyers to the sidelines [1].
[1] Colliers International Taiwan 2025 Q1 Commercial Property Market Report[2] "Unclear US tariff policies dampen confidence in Taiwan property market," Focus Taiwan, 2025-04-01[3] "Taiwan plans to strengthen cooperation with US across multiple sectors," Taipei Times, 2025-02-20[4] "Taiwan sees slump in commercial property transactions," Business Today, 2025-04-01[5] "US tariff implications on Taiwan's economy," Taiwan News, 2025-03-21
- The unpredictable US tariff policies are causing manufacturers to critically evaluate their global presence and potential production site locales, potentially postponing expansion or investment plans in the industry.
- In the first quarter of 2025, the commercial property transactions were dominated by owner-occupiers, as companies like High Power International (高力國際) purchased properties to fortify their operations.
- The uncertain US trade policies are chilling the property investment market in Taiwan, with investment-focused activity being scant and financial regulators having curtailed minimum returns.
- As the US trade policy continues to unsettle consumer and property markets across the globe, it will likely diminish business and investor confidence in the Taiwanese market, potentially impacting economic growth and further dampening property transactions.
