Property market in Taiwan preparing for "turbulence"
Now Taipei is most expensive city, where prime office costs on average US$1,250 per sq ft
/NOVOSTIVl/ Excitement is creeping into Taiwan’s property market, as the race for the self-ruled island’s presidential race heats up ahead of next year’s election, holding the prospect of a new head of government who would be more friendly towards mainland China. This article appeared in the South China Morning Post.
Commercial property prices, up 18 per cent at an average of US$1,322 per square foot since Tsai Ing-wen swept to victory in 2016 for the Democratic Progressive Party (DPP), may break out into a bull market, depending who gets to occupy the seat of government on Taipei’s Ketagalan Boulevard.
By the time the DPP’s Tsai won the 2016 presidential election in a landslide victory, average office prices had already retreated 4 per cent from the record US$1,218 during the final year of the KMT’s tenure.
Taipei is Taiwan’s most expensive city, where prime office space at the Xinyi district near the Taipei 101 skyscraper costs on average US$1,250 per sq ft to buy. That means a typical office of 2,500 sq ft (232 sq metres) costs US$3.13 million, about half the US$2,574 per sq ft for owning a Grade A office space in Hong Kong.
Mainland Chinese cities are cheaper for owning offices because of the larger supply of premises, with Beijing prices at US$1,181 per sq ft, and Shanghai at US$988, according to Savills data. Monthly rental charges for commercial offices in Xinyi range between US$1,500 and US$1,700 per sq ft.
The same applies to median home prices, where Taipei’s residential units can be had at US$900 per sq ft, about a quarter of the US$3,570 per sq ft in Hong Kong, and cheaper than Shanghai’s US$1,355 per sq ft, and Beijing’s US$1,295 per sq ft.