"Taiwan Real Estate Report Q2 2011" is now available at Fast Market Research

May 5, 2011 - PRLog -- Our latest interviews with in-country sources in Taipei confirm that conditions within Taiwan's commercial real estate sector have changed from the previous interviews in mid-2010.

The country's economy is somewhat dependent on the strength of mainland China and as this is slowing at the moment, so must Taiwan. The country's inflation is low, coming in at just 1.1% year-on-year (y-oy) in January. Unlike much of the region, Taiwan has been much more at the mercy of the global financial crisis and the country's commercial real estate market has, therefore, been affected too.

We saw sharp falls in rents in the commercial real estate market in 2009 and although local sources reported that they stabilised in the first half of 2010, both retail and office space saw large drops again in H210. Some were particularly severe - minimum end rental costs were down by 50% for office space. Maximum rental costs settled back at their 2009 levels for both retail and industrial space. Maximum rents for office space finished 2010 at US$30 per m2 per month, down from US$40 at the end of 2009.

Government intervention to help stem residential property price increases has pushed yields down hard in the commercial sector too. This, coupled with an oversupply of space in Taipei in the retail and industrial sub-sectors especially, has resulted in a slump in rental rates and continuing high levels of vacant space.

Looking forward, our sources are reasonably optimistic, as they envisage that rental rates will at worst move sideways (and more likely increase somewhat) throughout both 2011 and 2012. The highest increase is likely to be for retail space in Taipei, up from US$70 per m2 per month both in 2009 and at the end of 2010 to US$79.2 in 2011.

The comments from our in-country sources in Taipei suggest that net yields in H110 were broadly the same as they were in 2009. We saw a different picture in the second half of 2010 across all three subsectors, as yields dropped dramatically. The raging residential housing market and sharply increasing land values must have pushed up the capital value of commercial space.

Our local sources now expect yields to track sideways over the next two years and for all three subsectors to yield less than 4%. This is in direct contrast to forecasts made in mid-2010, which suggested yields were likely to stay around 8-12%.

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Report Table of Contents:

SWOT Analysis
- Taiwan Real Estate/Construction SWOT
- Taiwan Economic SWOT
- Taiwan Business Environment SWOT
Real Estate Market Overview
- Table: Taiwan's Real Estate Market - Historic Rents, 2009 And 2010 (m2/month, US$)
- Table: Taiwan's Real Estate Market - Net Yields, 2010 And 2011 (%)
- Table: Taiwan's Real Estate Market - Terms Of Rental Contract/Lease, Mid-2010
- Table: Taiwan's Real Estate Market - Available (m2) And Vacant Space (%), Mid-2010
Industry Forecast Scenario
- Real Estate Outlook
- Table: Taiwan's Real Estate Market - Rentals, 2010-2012 (msq/month, US$)
- Table: Taiwan's Real Estate Market - Forecast Net Yield, 2008-2015 (%)
- Taiwan's Construction Industry Outlook
- Table: Taiwan Construction And Infrastructure Industry Data, 2007-2015
- Table: Taiwan Construction And Infrastructure Industry Data, 2012-2020
- Construction and Infrastructure Forecast Scenario
- Macroeconomic Forecast
- Table: Taiwan - Economic Activity, 2008-2015
Business Environment
- Real Estate/Construction Business Environment Ratings
- Table: Asia Real Estate/Construction Business Environment Ratings
- Taiwan's RECBER
- Asia Pacific Project Finance Ratings
- Table: Design And Construction Rating
- Table: Commissioning And Operating Rating
- Table: Overall Project Finance Rating
- Taiwan's Business Environment
- Table: BMI Business And Operation Risk Ratings
- Table: BMI Legal Framework Rating
- Table: Labour Force Quality
- Table: Annual FDI Inflows Into Asia, 2006-2008
- Table: Top Export Destinations, 2000-2008 (US$mn)
- Table: Trade And Investment Ratings
Company Profiles
- BES Engineering Corporation
- Cathay Real Estate Development Company
- Farglory Land Development
- Huaku Development
- Huang Hsiang Construction Corporation
BMI Methodology
- How We Generate Our Industry Forecasts
- Construction Industry
- Bank Lending
- Real Estate/Construction Business Environment Rating
- Table: Weighting Of Indicators
- Project Finance Ratings Indicators
- Table: Design And Construction Phase
- Table: Commissioning And Operating Phase - Commercial Construction
- Table: Commissioning And Operating Phase - Energy And Utilities
- Table: Commissioning And Operating Phase - Transport
- Sources

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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.