AI drives a wave of industrial real estate land hunting and factory clearance. This year’s transaction volume in Taichung alone reached 53.8 billion yuan.
The wave of AI drives the purchase of land in the technology industry, accounting for more than 70% of single transactions of more than 1,000 square feet
Quick Look
- According to statistics compiled by commercial brokers, listed companies have purchased 53.8 billion yuan in industrial real estate in Taichung this year.
- The wave of AI has driven the purchase of land in the technology industry, with single transactions of more than 1,000 square feet accounting for more than 70%, and the average transaction area is nearly 2,200 square feet.
- Industrial land in Taichung Industrial Park costs 400,000 to 500,000 yuan per square meter, and Taiping and Dali Industrial Zones cost 300,000 to 400,000 yuan per square meter.
AI-generated summary
Why It Matters
The wave of AI continues to drive the technology industry to purchase industrial real estate. Enterprises’ demand for production bases is no longer limited to manufacturing space, but must also take into account multiple uses such as cargo warehousing, technology research and development, and reserved space for future production capacity expansion.
According to the statistics compiled by commercial brokers, listed companies have spent 53.8 billion yuan on industrial real estate in Taichung this year.
The AI wave continues to drive the technology industry to purchase industrial real estate. According to the statistics compiled by commercial brokers, listed companies have spent 53.8 billion yuan on industrial real estate in Taichung this year.
Chen Guangyu, director of Xinyi Global Asset Central District's Commercial and Commercial Affairs Department, pointed out that with industrial upgrading and changes in operating models, companies' demand for production bases is no longer limited to manufacturing space, but must also take into account multiple uses such as cargo warehousing, technology research and development, and reserved space for future production capacity expansion. In particular, this year's single industrial real estate transactions with an area of more than 1,000 square meters accounted for more than 70% of the total transactions, and the average transaction area of a single piece of industrial land this year was nearly 2,200 square meters, showing that technology companies have clear demand for medium and large-scale production bases.
In addition, more than 70% of the industrial real estate transaction volume this year was concentrated in designated industrial zones, indicating that companies prefer to locate in industrial clusters with complete infrastructure and cluster benefits. However, the supply of industrial land in popular industrial clusters is limited, and the acquisition cost has been rising year by year. For example, in the Taichung Industrial Park located in Xitun and Nantun Districts, the industrial land market price has reached 400,000 to 500,000 yuan per square meter; in the Taiping Industrial Zone and Dali Industrial Zone on the east side, the industrial land market price has been 300,000 to 400,000 yuan per square meter. Some of the targets located within the urban planning area and with better site conditions have even been listed with the prefix 4.
Chen Guangyu said that the demand for land in the technology industry has increased, and many corporate customers have begun to turn their attention to surrounding emerging industrial clusters for land purchases. Wuri is one of the areas benefiting from this wave of demand overflow.
Open Questions
- Which listed companies specifically carried out these land purchase transactions?
- What are the specific uses and estimated investment timetable of these land acquisition plans?
- Will the supply of industrial real estate in Taichung increase in the future to alleviate the pressure of rising prices?
