In the first half of this year, the number of buildings transferred through building sales across Taiwan was 124,619. (Photo/photo by reporter Zhang Chengyun)
Buying sentiment in the residential market is still consolidating at a low level, but commercial real estate transactions have significantly heated up, showing a market difference of "hot housing and hot business". Yang Changda, director of Cushman & Wakefield Real Estate Appraiser Firm, said on the 7th that the number of building sales and transfers in Taiwan this year is facing a battle to defend 260,000 units. Can the real estate market? Stabilization remains to be seen; on the other hand, benefiting from the expansion of the AI supply chain and the return of life insurance funds, the value of commercial real estate transactions in the third quarter reached 105.8 billion yuan, a record high in a single quarter. The cumulative amount in the first three quarters reached 264.5 billion yuan, which is about 1.7 times the transaction scale of last year.
According to statistics, in the first half of this year, the number of transferred buildings in Taiwan was 124,619, which was lower than the 130,000 in the same period last year. This shows that the momentum of residential transactions is still to be restored. However, the transaction volume has shown signs of stabilizing recently. Statistics from the Land Bureau of the six cities showed that in September, the number of transferred buildings in the six cities totaled 17,945, a monthly increase of 14.1% and an annual increase of 11.6%. Five of them increased compared with the same period last year, and only Tainan showed an annual decrease.
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In the first nine months of this year, the number of transferred buildings in Liudu reached 151,612, an annual decrease of only 0.1%, almost the same as the same period last year. Although short-term transaction volume has rebounded, it remains to be seen whether the growth can continue throughout the year.
Yang DaDa analyzed that the central bank hopes to have some impact on the housing market by relaxing the loan limit for second-home purchases by natural persons. However, judging from the current transaction trend, the volume of building sales and transfers throughout this year is still facing a test. The market is paying attention to whether it can maintain the 260,000-building level. However, the annual transaction volume should not be lower than the 240,000-building level in 2016.
While the residential market is still waiting for buying momentum to subside, commercial real estate is driven by the needs of enterprises to expand production. In particular, the AI industry continues to invest in capital expenditures, driving demand for the purchase of factories and related industrial facilities, becoming an important support for commercial real estate transactions this year.
According to statistics from Cushman & Wakefield, the amount of commercial real estate purchased by AI-related industries in the first three quarters of this year reached 179.4 billion yuan, accounting for nearly 70% of the overall transaction value. Enterprises such as Quanta, Xinxing and ASE continue to purchase factories, reflecting that the demand for expansion of the AI supply chain is being transformed into actual real estate investment, and also pushing up the scale of commercial market transactions.
In addition to corporate expansion, life insurance funds have also been reinvested in the commercial real estate market. In the first three quarters of this year, the life insurance industry purchased commercial real estate for 35.6 billion yuan, which is higher than the 5.6 billion yuan for the whole of last year. Among them, KGI Life purchased Runtai Nangang Yucheng Plaza for 20.6 billion yuan. The main tenant of this case was Huida, making it the largest transaction in the third quarter.
