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Substantial new supply and intensified competition in emerging areas is generating a challenging leasing environment.
- The low unemployment rate and the growth of the technology industry have fuelled demand for office space. Companies looking to upgrade their workspace are especially likely to favour buildings in the same district.
- Even though leasing activity slowed in Q3/2025, the average rent for Grade A office buildings increased slightly by 0.5% QoQ to NT$3,250 per ping, with stronger rental growth seen in the Dunhua N. and non-core districts.
- The vacancy rate in the Grade A office market remained stable at 6.8% in Q3/2025, down 0.2 ppts YoY, as no new buildings were completed this quarter. Most market activity involved relocations within the same district.
- Four new buildings totalling 36,000 ping will be completed in Q4/2025, pushing the overall vacancy rate to 8.4%. Vacancies in non-core and Dunhua N. districts are expected to surge.
- Despite a strong economic performance, companies remain cautious about increasing their operating expense budgets. To enhance management and cost efficiency, tenants prefer to expand office space within the same building.