‘2017 is recovery year in Taiwan’
The property market in Taiwan in 2017 is one of the healthiest and safest in Asia Pacific. The office sector is one of the brightest spots; with limited new supply and steady growth in demand, Taipei class A office vacancy rate is expected to drop from 10% to around 8%. Rentals too would see a moderate increase of between 2% and 3 %.
After a price correction of 10% to 20% in 2016 due to the cooling measures (increased taxes) imposed by the government, the residential market is expected to be in recovering mode in 2017. New housing supply in Taipei will remain limited as most urban areas are fully developed and urban renewal projects are still difficult to implement.
Capital from China to invest in real estate is mostly restricted, while the demand from the Chinese could drive the property market boom if cross strait relationship improves and policy constraints are released in the future.
TONY CHAO is Managing Director of Jones Lang LaSalle Taiwan.