Property transactions for commercial real estate plummet by 37%
By Crystal Hsu / Staff reporter
The recent US trade policy, culminating in substantial tariffs on Taiwanese goods, is causing a wave of turbulence in Taiwan's economy, and it's taking a toll on property investment. This, according to Colliers International Taiwan (高力國際), which estimates a 37% year-over-year drop in commercial property deals last quarter, amounting to NT$28.7 billion (US$882.29 million).
Collins International Taiwan blames unclear US tariff policies and lingering credit controls in Taiwan for this frosty market. Firms are reconsidering their global expansion and production bases, potentially delaying or scaling back investment plans. In fact, owner-occupiers have been the main drivers in the deals market with firms like Uni-President Group, Micron Taiwan, ASMedia Technology Inc, and Wendell Industrial purchasing properties to reinforce their operations.
Among the 12 billion NT$ deals, factories and logistics warehouses reigned supreme, grabbing the largest share of transactions. Industrial offices followed closely in second place, while land deals continued to be a hot commodity, especially in southern Taiwan. Key players like Farglory Land Development Co and JSL Group have been snapping up land plots and old factories for development.
The strong demand for capacity expansion and workspace upgrades has shown that factories and industrial offices remain top choices for companies from sectors like electronics, integrated circuit design, and semiconductors. However, investment-focused activity has quieted down with local life insurance companies avoiding transactions and financial regulators lowering the minimum return.
The tariffs aren't just impacting market sentiment; mortgage loans have also seen a slowdown. Demand for credit had slowed to the lowest level in nearly a year, with construction loans increasing by only 2.97% year-on-year. House loans actually picked up, but the growth rate remained modest due to increased credit controls.
In light of this, Colliers International Taiwan advises investors to reassess their portfolios and prepare for market fluctuations. As financing costs remain high, owner-occupiers are likely to dominate purchases of factories and industrial offices. Furthermore, companies might be cautious with expansion plans, leading to a slower decision-making process. This cautious approach across companies isn't great news for the property market.
The Central Bank has also reduced its forecast for Taiwan's annual GDP growth in 2025, citing growing uncertainty linked to US tariffs. The potential for ongoing revisions stems from these same trade tensions.
Back to the drawing board, Colliers International Taiwan states that the US trade policy may be undermining consumer and property market confidence worldwide, eventually impacting property investment in Taiwan.
It's important to consider the impact of US tariffs on Taiwanese real estate once global markets find their footing. According to industry insight, the tariffs reduce foreign investor appetite, complicate corporate investment decisions, and add unfavorable currency and financing effects to the equation, all of which affect property investment[1][4]. The Taiwanese government is currently working to pave the way for better US-Taiwan trade relations, potentially easing these effects and restoring stability[4].
[1] Taiwan News. (2025). Taiwan's president pledges to deepen trade ties with the US. Retrieved April 25, 2025.
[3] The Economist. (2025). America First: US Trade Policy. Retrieved April 25, 2025.
[4] Focus Taiwan News Channel. (2025). Taiwan strengthens US ties as trade frictions arise. Retrieved April 25, 2025.
- High tariffs imposed by the US on Taiwanese goods, as part of its trade policy, are causing a decline in commercial property deals, according to Colliers International Taiwan.
- Firms like Uni-President Group, Micron Taiwan, ASMedia Technology Inc, and Wendell Industrial are purchasing properties to reinforce their operations, making owner-occupiers the main drivers in the deals market.
- The strong demand for capacity expansion and workspace upgrades in industries like electronics, integrated circuit design, and semiconductors is making factories and industrial offices top choices for these companies.
- Colliers International Taiwan advises investors to reassess their portfolios due to the impact of US tariffs on property investment in Taiwan, as it may reduce foreign investor appetite and complicate corporate decisions.
