Taiwan’s property market is heating up thanks to factory reshoring, bucking regional gloom
- Taiwanese authorities say about 40 domestic firms are eyeing move back from mainland China as trade war bites
- Tight office supply in Taipei central business district points to falling vacancy rates, rising rents
A manufacturing uptick that promises to put the sparkle back on the “Made in Taiwan” label is helping bolster the island’s real estate market, according to analysts.
As manufacturers in mainland China seek out new domiciles for production amid the ongoing trade war between Washington and Beijing, Taiwan has come back into focus as a reasonable alternative.
“We see a lot of manufacturers or companies that are retreating partially or moving back some of their factory activity from China,” said Ricky Huang, general manager at Savills Taiwan. “They want to relocate back to Taiwan so this boosts the transaction of industrial and office property.”
Huang said inquiries from property investors about opportunities in Taiwan have picked up sharply in the last six to eight months.
“We do hear many inquiries from regional funds and foreign investors,” Huang said.
Among Hong Kong investors active in Taiwan recently, Huang cited boutique investment firm Arch Capital Property Advisors’ acquisition in December of a 50 per cent stake in Taimall Shopping Center in Taoyuan for US$450 million.