Flat Taiwanese Commercial Property Market Now Targeted by Investors
in China and Hong Kong
The number of investors in China and Hong Kong who are inquiring through a variety of different channels about investing in Taiwan commercial properties increased significantly after the legislative elections. Their sights have also shifted from single-floor commercial properties to entire commercial buildings. In the future, restrictions on Chinese tourism in Taiwan are expected to be lifted. This will stimulate the development of Taiwan's tourism industry, so an extremely high level of interest has been seen in the Nanjing-Songjiang business district where there is a high concentration of travel agencies. This has now become the most popular commercial business district in Taipei City and investors would do well to take note of this development.

Take the commercial property market in Hong Kong for example, after the CEPA was signed between China and Hong Kong in 2003, the influx of Chinese capital pushed Hong Kong's commercial property market to new heights. Statistics indicate that trade volume in Hong Kong offices spaces in 2007 set a new record – a 40% increase over 2006. The total value of the transactions was the highest since 1997 as well – a 60% increase on 2006. In the future, the Taiwan commercial property market may well replicate the Hong Kong model. With limited supply and more open cross-strait ties trend in the future, the demand for office space will become more acute. Taiwanese commercial properties have been undervalued for a long time with the average price per ping being between 0.65 ~ 0.90 Million NTD. This is not only far lower than Hong Kong but also behind the prices for Shanghai's Lujiazui office district. As demand continues to grow and there is no shortage of capital in the market, the commercial property market enjoys excellent prospects ahead.