11 April 2012

Taiwan commercial real estate plunging to NT$5.5 billion in 1Q 2012.

The total sales value of commercial real estate was NT$5.5 billion in 1Q 2012, a decrease of 85.49% QoQ and 60.55% YoY respectively. Lack of notable transactions and property owners asking too much resulted in a low transaction amount in this quarter. Transactions over NT$500 million included:

• Ralink Technology Co Ltd bought part of M Building in Tai Yuen Hi-tech Industrial Park for NT$911 million.

• Shin Kong Life Insurance Co Ltd spent NT$825 million for the retail shop of Taipei Morgan Building.

• Bank Taiwan Life Insurance Co Ltd spent NT$750 million for part of Yeh's Tsai Chee World Trade Building.

• TransAsia Airways Co Ltd and Taiwan Secom Co Ltd, subsidiaries of Goldsun Group, spent NT$1.191 billion for the under-construction development, Green Energy Headquarters, in Neihu.

In 1Q 2012, the others type were major investors. The investment of others type investors was NT$1.829 billion, greater than the Manufacturing industry with NT$1.764 billion and the Finance and Insurance industry with NT$1.575 billion. The investment of these three sectors accounted for 33.15%, 31.97% and 28.55% respectively of the total sales value in this quarter.

On the property type front, the sales value of Industrial Office space in 1Q 2012 was NT$3.38 billion accounting for 61.26% of total sales, while the sales value of Office and Retail type properties was NT$990 million and NT$975 million respectively. Major transactions for Industrial Office properties were Green Energy Headquarter in Neihu, Tai Yuen Hi-tech industrial Park in Hsinchu County and Far Eastern Century Plaza. Major transactions for Office properties included Yeh's Tsai Chee World Trade Building and the Yungyu Building on Boai Road, the latter being bought by Xinhua Development Co for NT223 million. Shin Kong Life Insurance Co Ltd spent NT$825 million for the retail shop of the Taipei Morgan Building and this was the key contributor to retail properties’ transactions in this quarter.

In terms of investment areas, the total investment amount in Taipei was NT$3.454 billion, accounting for 62.60% of the total sales value in 1Q 2012. Second and third were New Taipei City and Hsinchu County and their sales values in this quarter were NT$1.121 billion and NT$ 911 million respectively. The combined sales amount of these three areas accounted for 99.0% of total sales in this quarter.

Ryan Chu

Marketing & Communications