Taiwan Q3 commercial property transaction volume declines by 8%

Total deal value reached NT$36.8 billion during the quarter.

According to a Savills report, Taiwan’s commercial property transaction volume reached NT$36.8 billion in Q3, bringing the year-to-date total to NT$124.3 billion, a slight 8% decline YoY.

“Owner-occupiers dominate the sales market, accounting for 80% of total transaction volumes. Among them, the technology sector is most active, investing NT$23 billion in Q3, a 41% QoQ increase, representing 62.5% of the commercial property market,” the report said.

Here’s more from Savills:

The two largest transactions of the quarter were both led by tech companies as Delta Electronics acquired a factory in Taoyuan Technology Industrial Park for NT$6.95 billion, marking the largest tech-sector deal of the year. Meanwhile, ASE Group purchased a newly built factory in the Southern Taiwan Science Park for NT$6.5 billion.

The insurance sector ranked as the second-largest buyer in Q3, investing NT$5.26 billion. Despite being more active than in previous quarters, investment appetite remained conservative compared to three years ago, with the potential risk of rising minimal investment yield requirements, which might increase from 2.545% in 2025 to 2.72% in 2026.

In terms of location preference, insurers shifted focus from industrial assets in Taoyuan last year to core areas in Taipei City this year. A notable transaction involved Fubon Life Insurance acquiring an 8,300-ping space in a strata title building in Taipei for NT$2.8 billion. The property is currently leased to an entertainment and recreation operator, which is expected to deliver a yield of over 3%.

The land market has continued to weaken due to the impact of tighter selective credit controls. Total transaction volumes have declined sharply for two consecutive quarters to NT$18.5 billion, dropping by 82% YoY. The cumulative land transaction volume for the first three quarters dropped by nearly 40% compared with the same period last year. Policy and tighter loan-to-value ratios have dampened buyer confidence, and the land market is expected to remain subdued.

Looking ahead, the rapid emergence of the AI industry is expected to drive increased demand for semiconductors, with expansion plans across the semiconductor supply chain likely to become a key focus in the commercial property market.

As industry performance continues to diverge, traditional industries facing operational challenges are expected to actively dispose of underutilized assets. With the loan environment remaining tight, developers are shifting focus to urban renewal projects, which offer greater flexibility in capital deployment and are less time-sensitive in terms of construction schedules.