2022 market still favours landlords amid solid demand and limited supply
With no new supply in Q2 2022, the technology and financial sectors expanding were the main drivers to push down the vacancy rate to 3.1%, a 0.3% QOQ decrease. Rents slightly increased to NTD2,402 per ping (USD24.6 per square metre) per month, with the gap between the asking rent and the effective rent narrowing to 9.1%, down about 0.9 pps YOY. This is a record low since Colliers’ survey began in 2007.
- Though there is no new supply planned in 2022, Taipei is scheduled to see more than 360,000 ping (1.2 million square metres) of supply between 2023 and 2026. We expect vacancy to start increasing in 2023.
- With the growing importance of sustainability and employee health, green energy, health, and flexibility is becoming the future of the workplace. MNCs are increasingly considering whether target buildings have LEED and WELL certificates. Thus, we believe sustainability and wellness certification will be a unique selling point to tenants, and we recommend landlords and developers incorporate this in their strategies.