Taipei , Taiwan

Market Analysis for Industrial Land

Since the fourth quarter of 2005, the industrial land* east of the Jiouzong section in Neihu has become the hot investing area for developers and investors. This may result from that the land value of the Jiouzong section is roughly NT$300,000 /ping compared to the Sihu section and Wunde section at NT$500,000/ping ~NT$700,000/ping in Nei Hu Hi Tech Park (NHHTP).

The overall vacancy rate for NHHTP has dropped below 10%, large industrial estates are hard to find, and the available parcels are limited; thus, some medium and large enterprises which desire to expand the business have to consider purchasing lands to build enterprise headquarters or buildings. According to the survey conducted by Colliers International, there have been 8 transactions for land since the fourth quarter of 2005 to the third quarter of 2006; that is to say, the availability of land to purchase is decreasing rapidly due to the large absorption in NHHTP.

Among the transactions, roughly 70% is purchased by self-use buyers, and the prices range from NT$320,000/ping ~NT$350,000 /ping. The industries of buyers include electronics, mass media, and trade business. The purpose of purchasing the land is to build industrial estates for self-use. One of these parcels is purchased by a construction corporation and it is expected that this will be used for future industrial estates projects. Among these transactions, there are several foreign companies involved in; moreover, more and more foreign institutional investors investing income properties in NHHTP recently. Thus, it can be shown that NHHTP and this region have become another valuable investing market in addition to downtown Taipei.

We are pleased to announce that Colliers International completed three transactions with our clients purchasing large parcels of land. One of these three is cited by “Land Regulation Article 34-1: Landlords’ Preferential Right”, which illustrates that the transaction can be completed when more than two-thirds of the landlords are willing to sell the land.

Colliers placed the remainder of the payments with the Court for landlords who remained unwilling to sell at the time of the purchase; thus, we successfully integrate the forty plus landlords to help our foreign client to complete the transaction.

In addition, according to a survey by Colliers International, landlords of available lands have raised prices due to the prosperity of land transactions within the last year. Thus, there are few available parcels with integrated shape and large area; furthermore, parcels are over-priced on the selling market, which is over NT$400,000/ping. Other vacant lands are unavailable to sell due to the difficulty of integrating landlords’ opinion; thus, it is expected that purchasing lands in this area will become harder in the future.

(*: The region refers to the south of Mincyuan E. Rd., the east from Jiouzong Rd., and the north of Nanjing E. Rd.)

About Colliers International

Colliers International is a global affiliation of independently owned commercial real estate firms. The organization's 9,327 employees span the world in 241 offices in 54 countries. On a worldwide basis, Colliers manages 595,725,580 square feet, and has revenue of $US 1,442,478,223. For more information about Colliers International, visit our website at www.colliers.com.

Contact Information

David Chang Director - Industrial Agency Colliers International Ltd Taiwan Branch (T) 02 2719 6006 ext 180 (F) 02 2545 0048 David.Chang@colliers.com

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