Boston, MA -- (SBWIRE) -- 07/01/2014 -- We see oversupply in both the office and retail sub-sectors, although these markets will continue to be skewed by high demand, and rental rates, for premium, centrally located space. However, we believe that demand could outstrip supply for industrial real estate.
Economic indicators for Taiwan's trade-dependent economy are picking up, with exports increasing. However, the main risk to our outlook remains the impact of a slowdown in China, with its close links to Taiwan in terms of business, trade and tourism.
Meanwhile, we are beginning to see a correction in residential prices in Taiwan, after a period of boom in that sub-sector. While this will not have a direct impact on commercial real estate, should prices begin to fall more rapidly investors' confidence in the wider market could be dented.
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On the plus side, however, we believe that the central bank will continue its accommodative monetary policy. This will have a stabilising influence on the real estate sector.
Demand for office space remains concentrated at the top end of the market, a trend that we see continuing, although the small scale of this demand means that we are not forecasting that this will lead to a significant rise in overall rental prices, and supply will continue to outpace demand in Taipei. Despite our concerns, the retail sector remains buoyed by strongly growing consumer spending and an influx of tourists from China, boosting top-end retail. International retailers continue to want to set up shop in Taiwan, with the boost to demand this implies.
Meanwhile, the industrial sector, in the longer term we are expecting a divergence in rental rates between low grade and premium properties, with demand increasingly centred on the latter and driving down rates for the former as a result of Taiwan's high-tech economy. Again, downside risks stem from China's economic situation.
- Taiwanese insurance companies, previously only permitted to invest in domestic property,...
The Taiwan Real Estate Report features Business Monitor International (BMI)'s market assessment and independent forecasts of major construction projects in the residential and commercial markets, plus rental prices and yields in major cities. The report critically analyses the prospects for real estate within the broader economic and financial context - both domestic and global - via our econometrically-modelled and clearly explained banking and economic forecasts and follows this through to evaluate the implications for REITs.
BMI's Taiwan Real Estate Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the real estate industry in Taiwan.
- Benchmark BMI's independent real estate industry forecasts for Taiwan to test other views - a key input for successful budgeting and strategic business planning in the Taiwanese real estate market.
- Target business opportunities and risks in Taiwan through our reviews of latest industry trends, regulatory changes and major deals, projects and investments.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).
BMI Industry View
Summary of BMI's key industry forecasts, views and trend analysis covering real estate and construction, regulatory changes, major investments and projects and significant national and multinational company developments.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the real estate sector and within the broader political, financial, economic and business environment.
Overview of the real estate sector, including analysis of existing/planned real estate developments and emerging industry trends in the office, industrial and commercial sectors.
Features detailed city-level data and analysis on rental prices, yields, contract terms and real estate availability with separate chapters covering the office, retail and industrial sub-sectors.
Industry Forecast Scenario
Historical data series (2010-2012) and forecasts to end-2018 for the domestic real estate industry and for the local and global finance industry. Indicators include:
Real Estate: Office, retail and industrial real estate yields for all major cities (%); short-term forecasts on minimum and maximum real estate rental prices by sub-sector (US$ per square metre, and local currency per square metre)
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