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Developers’ appetite for land transactions has rebounded, with transaction volumes exceeding NT$30 billion for two consecutive quarters.
- The Taiwan central bank maintained the interest rate unchanged while raising the required reserve ratio by 0.25% to tighten bank liquidity. Meanwhile, the sixth wave of selective credit control measures was issued to cool down the overheated housing market.
- Commercial property transaction volume in Q2/2024 total NT$24.6 billion, reflecting a decrease of 57% QoQ and 42% YoY. End-users emerged as the dominant buyer group, accounting for 66% of the transacted total.
- Factories and industrial offices were the most active segments in the investment market, with transaction volumes reaching NT$11.2 billion and NT$6.8 billion, respectively. Factory deals were mainly concentrated in New Taipei City and Tainan City, while nearly 90% of industrial office transactions occurred in New Taipei City.
- The land market showed strong momentum, with transaction volumes reaching NT$51.8 billion this quarter, representing a 64% YoY increase. This led to a 97% YoY jump in land deal volumes for 1H/2024, total NT$94.9 billion.
- The market saw a significant rebound in developers’ appetite for land acquisitions, with total acquisitions reaching NT$36.5 billion in Q2/2024. As their land inventory gradually increases, this will translate into a surge in supply and activities in the pre-sale housing market.
- With the limitation on repatriated off shore funds being lifted this August, approximately NT$138 billion of capital is expected to be injected into the market over the next three years. The impact on the commercial property market remains to be seen.