Taiwan ranked sixth in commercial realty sales
The China Post news staff
September 5, 2012, 11:13 am TWN
Taiwan ranked sixth in terms of commercial real estate sales in the second quarter in Asia, according to a report by the CBRE Group released yesterday.
The No. 1 to 3 places were taken by China, Japan and Hong Kong, the report said.
According to CBRE data, Taiwan commercial real estate sales in the April-June period totaled NT$33.8 billion, a significant rise of 470 percent from the first quarter. Money contributed by insurers accounted for 61 percent of the total, the report said.
The report was released after the government launched a measure lifting the investment yield for insurers purchasing real estate. "In my view, insurers will continue to invest in commercial realty to digest abundant capital they have on hand," said CBRE senior director Chen Chun-yi. "However, they will be more prudent and look for properties ideal for long-term investment."
According to the report, total investment in Asia-Pacific commercial realty hit US$17.9 billion in the second quarter, up 54 percent from the first three months.
The report further pointed out many investors were concerned with the European debt crisis, and there were equal numbers of optimists and pessimists. The increase in second-quarter sales was mostly due to completion of deals inked months ago.
Back in August, Taiwan's commercial real estate was boosted with the sale of the Mercuries Life Hong Yuan Building to Cathay Life, which won the bid with NT$7.256 billion, or a premium of 23.4 percent over the base price.