Savills

Publication

Taiwan Investment Brief - Aug 2025

The markets show divergence

Industrial property transactions reach NT$30.9 billion, Taoyuan emerges as investment hotspot.

  • Affected by US reciprocal tariff policies, DGBAS revised its 2025 economic growth forecast downward to 3.1%. Unclear tariff prospects have dampened investor confidence, leading to divergent buyer sentiment in the commercial property and land markets.
  • Significant commercial property transactions totaled NT$33.5 billion in Q2/2025, down 33.5% QoQ but up 15.2% YoY, indicating stable and healthy market momentum, with owner-occupiers accounting for 65% of deals.
  • Transactions of factories and industrial offices were active, reaching NT$17.9 billion and NT$13 billion, respectively with half of these transactions concentrated in Taoyuan City.
  • The technology sector, especially electronic components and computer peripheral manufacturing industries, continued to drive the commercial property market, investing NT$16.3 billion this quarter.
  • The land market showed a significant drop, with Q2/2025 transactions totaling NT$32.8 billion, down 45% QoQ and 39.8% YoY.
  • Developers’ land acquisitions declined significantly, with quarterly land purchases dropping by 70% QoQ to NT$14 billion, reflecting a conservative attitude toward short-term residential market prospects.

Amid ongoing global political and economic uncertainties, the technology sector’s momentum remains unaff ected by tariff concerns, with owneroccupiers continuing to dominate the market. Some companies are adopting leaseinstead-of-purchase strategies to maintain fl exibility, while constrained investor demand is focusing on high-yield industrial properties.

Erin Ting, Savills Research