[Office Leasing] Commercial real estate turnover, office rentals, and leased square footage are all at a high point.
Weekly News Highlight
1. Three highlights of the first half of the year! Commercial real estate turnover, office rents, and leased space were all at highs.
2. Another building hunt! New Knowledge Commercial Office in Sun Run Villa is swept away by I-Chiun for $2.99 billion!
3. Xunde's estimated profit of over $266 million from the disposal of the Yeung Mui Landfill is to be relocated to a new factory next year.
4. 1993.5 ping of prime land will be released in Tainan's Eastern District Subcenter, and a shopping mall will be set up with the right to use the land.
5.Zuoying High-speed Railway Science and Technology Center Business four bases new investment North Kaohsiung Science and Technology new gateway will take shape!
6. Runlong actively hunts for land to replenish inventory and spends 1.3 billion to buy the land in Kaohsiung Lingya of Capital Construction.
1. Three highlights in the first half of the year! Commercial real estate turnover, office rents, and leased space were all at highs.
2024.07.10 Business Times I By Tsai Huifang／Reporter
Nvidia CEO Jen-Hsun Huang Decides to Set Up Asia-Pacific's First AI Intelligence Center in Taiwan, Fueled by a Tidal Wave of Funding
The new R&D Centres will also help to boost the potential demand in the commercial office market in terms of turnover, rental market, and leasing costs, and will also contribute to the development of the new R&D Centres.
There are bright spots in the three major indicators of commercial real estate turnover! Jones Lang LaSalle's latest statistics show that commercial real estate transactions in the first half of the year
The office leasing area in Taipei City reached 17,400 ping, which is directly comparable to the office leasing area of
For the whole year of 2023, the average monthly rent per ping of office space will reach $3,196, setting a new record.
Jones Lang LaSalle's Managing Director, Mr. Hau Man Shun, said, "At this stage, the capital momentum is strong, and a while ago Pfizer Nvidia
After the decision to move into Taiwan to build Asia's first AI intelligent innovation R&D center, there are indeed many foreign investors who have been
Inquiries about commercial real estate in Taiwan are expected to be viewed positively.
HOU Wenxin analyzed that in the first half of the commercial real estate market, Taiwan's capital market is full of capital momentum.
Since the "Regulations on the Management and Utilization of Overseas Capital Repatriation and Taxation" in 2019 so far, Taiwan businessmen's capital has continued to return.
Increase the deposit balance of all banks in Taiwan by about 3 trillion dollars per year, and the annual growth rate of deposit balance reaches 6.2% in 2023.
The central bank's statistics show that in May, bank lending for real estate purchases grew by 1,326 percent from April. In addition, the central bank statistics, this year's May bank lending for the acquisition of real estate grew 1,326 percent over April.
The total amount of the yearly growth rate of $16.84 trillion, up 1.11 trillion from the same period last year, represents an annual growth rate of 7%. In Jadokan
The Government has also indicated that there is an abundant tide of capital.
Hou Wenxin pointed out that, coupled with the warming of the economy, AI theme to promote Taiwan's information communication audio-visual industry, such as the growth of foreign sales
In the first half of the year, Taiwan's commercial real estate market was hot, with the amount reaching NT$71.1 billion, an annual increase of 19%.
In the second quarter, it amounted to $35.1 billion, the second highest record in nearly 10 years.
The office leasing market is even brighter, Hou Wenxin analysis, due to the release of new building supply, coupled with corporate office liter
Demand for office space in Taipei's core business districts reached 10,517 ping in the second quarter, a quarterly increase of approximately
53%, an annual increase of 2.4 times.
In terms of office leasing area, the cumulative total reached 17,400 ping in the first half of the year, which is already close to the full year of 2023.
As for the office rental market, the average monthly rent per ping has reached $3,196, the highest in history.
However, the rate of increase in a single quarter is gradually shrinking, with the rate of increase in the second quarter being only 0.1%.
Looking ahead to the second half of the year, Mr. Hau believes that the market's enthusiasm in the first half of the year can be expected to continue, but it is important to observe the political and economic situation.
Whether the Government has further adopted financial policies to limit the liquidity of the real estate market.
2. Another building hunt! New Knowledge Commercial Office in Sun Run Villa is swept away by I-Chiun for $2.99 billion!
2024.07.10 Business Times I By Tsai Huifang／Reporter
The commercial office market has seen another large-scale "property hunt"! The listed construction company New Resources (6186) sold a total of 29.9% of its shares at the end of May.
The case of "Xin Zhi Shang Office" in Xinzhuang, New Taipei City, has been penalized with a total of 100 million yuan! But last week, on July 5th, it was suddenly announced
"The contract was terminated by mutual agreement because some of the buyer's trading conditions could not be fulfilled"; but just five days later, the
Today (10) announced a big turnaround! A new buyer has appeared, in the afternoon, the LED wire frame manufacturer I-Chiun Precision Industry
(2486) announced that it has "swept away" the entire building of Xinrun "Xinzhuang Xinzhi Commercial Office" at a price of RMB2.99 billion as
Free and clear, the whole deal was declared a lost cause, and it was resurrected.
The progress of the "Hsin Chong Sun Chi" commercial office building project is expected to be completed and recognized by the end of the year if it proceeds as scheduled.
Based on the current capitalization, it is expected to contribute net income after tax of NT$3.69 per share, which is a great tonic for Sunrun.
Xinrun's "Xinzhuang Xinzhi" office building is located in Xinzhuang District, New Taipei City, New Taipei City, Xinzhuang District, Xinzhi Section, Lot 54, 54-1.
Land and building under construction with 11 floors above ground and 3 floors below ground, and 130 parking spaces, with a building area of
4,585.20 psf.
A natural person buyer originally spent $2.99 billion to purchase the entire building of New Knowledge Commercial Office at the end of May.
With the pre-sale of properties, it is estimated that the benefit from the disposal will amount to $550 million, which will contribute $3.69 to EPS.
However, last week, on July 5, the deal was unwound, mainly due to the buyer's inability to meet some of the terms of the deal.
As a result, the contract was terminated by mutual agreement, and the potential profit contribution to Sunrun could not be realized for the time being.
However, there is no impact on the financial business of Sunnyside because the property has not yet been counted.
However, there is another dramatic turnaround today! In just 5 days, Sunrun has found a new buyer, i.e. Fidelity.
I-Chiun, the AI-driven stock with the same trading price of $2.99 billion, decided to buy the whole stock for its own use.
Production.
If it is expected that this commercial office building will be handed over and booked before the end of the year, New Profit will be able to recognize the benefit of the disposal.
Scale up performance.
3. Xunde's estimated profit of over $266 million from the disposal of the Yeung Mui Landfill is to be relocated to a new factory next year.
2024.07.10 Economic Daily News I Yin Hui-chung/Taipei
Xunde (6438) announced the disposal of Yangmei land factory office on the 10th, and the estimated benefit from the disposal is over NT$266 million.
The Company mentioned that in order to effectively utilize its assets, reduce operating costs and improve operating performance, and at the same time, the Company would be able to obtain a quicker and more accurate estimate of its operating costs.
It is scheduled to move into the new plant in the first quarter of next year, and the Yangmei plant will be disposed of first, so it is expected that there will be no loss of production capacity in a seamless transition.
The announcement of Xunde mentioned that it disposed of sections 688-13, 688-14, 688-15, and 688-13 of Shangtian, Yangmei District, Taoyuan City.
16, 688-17, 688-22, 688-38, 688-39, eight lot numbers, and buildings on the ground, land:
9,043.12 sq. m. (2,735.54 ping), Building: 5,733.16 sq. m. (1,734.28 ping), Preliminary
The total sale price was NT$700 million (including sales tax).
Xunde announced that the counterparty to the transaction: Lianqi Metal Co.
266,226 thousand. The specific purpose or use of the acquisition or disposal was to enable the Company to effectively utilize its assets and reduce its operating costs.
Costs and operational performance will be enhanced.
4. 1993.5 ping of prime land will be released in Tainan's Eastern District Subcenter to be used as a land-righted shopping mall.
2024.07.09 Liberty Times I By Lam Yiu Man / Report
In order to promote the effective use of land, the Tainan City Government will release the land to be acquired in the first phase of the South Tainan Station Sub-capital in the Eastern District.
The Government of the Hong Kong Special Administrative Region (HKSAR) is pleased to announce that it has launched an investment promotion campaign for the creation of a land right for the Station Precinct on September 24, 113 at 10:00 am.
The Stage 1 (Qualification) bid opening was held in Conference Room B1, Wing Wah Civic Center.
Tainan City Government Lands Bureau pointed out that the public land rights investment in the land, located on the north side of the production road, for the district
Post-acquisition buildable land with a land use zoning of approximately 6,590.13 sq. m. in the Station Precinct.
(about 1993.5 ping), with a construction rate of 60% and a volume rate of 400%, it is the new South Tainan Railway Station, which was undergroundized.
The few sites in the vicinity of the station that are available for immediate development not only provide transit, but are also suitable for the development of the station.
As a shopping mall, department store retail, office, hotel, restaurant, leisure and entertainment. Local Ownership Merchants
The project aims to make South Tainan a central hub for the revitalization of city-owned land and the development of urban prosperity.
The city government considers the South Tainan sub-capital area as the key development area that the city government has been actively promoting in recent years.
Synchronization of the "Tainan City Sports, Arts and Leisure Park District Citizen self-titled BOT case" investment operation, coupled with the future of the railroad.
Upon completion of the undergrounding of the new South Tainan Station, the station will definitely be able to integrate with the existing cultural, educational, arts and entertainment facilities.
The commercial resources are interconnected to promote the formation of a new capital center and a new living area in South Tainan, and to become the center of Tainan's eastern district.
It is hoped that through this project, quality manufacturers from the private sector will be attracted to move in and invest in the development of the district, thus promoting the development of the urban area.
Overall development, taking into account local development, will bring about a win-win situation.
Secretary of Lands Chen Shumei said that this case is located in the eastern part of Tainan City, South Tainan Station Sub-capital Phase I section levy
The development area has the second phase of Barkley Park, which is famous for its ecology.
Convenient living opportunities such as municipal hospitals, Chongde Market shopping district, etc. Large-scale construction projects continue to be launched in and around the development area.
In addition, there are also the Tainan Sugar Center Circular Building, the Xindu Anju Social Housing, the Tainan MRT Red Line and Blue Line, and the Tainan City Hall, the Tainan City Hall.
The Government is also working on the construction of major projects such as the new railway line.
The investment base of this case can be connected to the South Taipei South Station and the Advanced Transportation System Station Corridor, and is expected to bring in commuters.
Tide, the other case requires manufacturers to provide free space for the City's child care centers to increase public welfare, child care parents derived from the
The commercial demand for the site can also be matched with the commercial functions of the site and the future prospects are promising. The tender will be awarded to
One company or a consortium of two to five companies will participate in the bidding.
5. Zuoying High-speed Railway Science and Technology Center Business Base 4 new investment North Kaohsiung new gateway of science and technology will take shape!
2024.07.11 Liberty Times I By Lin Yaowen/Reporting
Zuoying high-speed rail technology center of public offices, the city government once again announced the investment in which the business four bases, the whole area to adopt
The period for accepting the submission of application documents is from the date of announcement to the date of submission of the application documents.
As of September 2, 113, the future of the expected migration of technological talent to work and settle in Kaohsiung, the high speed rail manufacturing
The "one-day living circle" will make "living by high-speed rail" the daily life of high-tech talents, and the Zuoying High Speed Railway will be the best way of life for them.
The Iron Technology Center will become the new gateway to technology in North Kaohsiung.
In response to the Semiconductor Industry S-Corridor Program and TSMC's move to Kaohsiung, the Kaohsiung municipal government has developed a number of related business and exhibition centers, such as the Kaohsiung International Convention Center and the Kaohsiung International Convention Center.
In order to meet the demand for service facilities such as transportation and transfer, the city government utilizes the advantages of the three-rail transportation hub at Zuoying High Speed Rail Station.
In order to fulfill the project of "Zuoying High-speed Railway Science and Technology Center", all public land on the west side of the Zuoying High-speed Railway Station will be transferred to the City Council for the development of the project.
The Government Finance Bureau is organizing the public urban renewal development to promote the Zuoying high-speed rail station area as an important part of North Kaohsiung through TOD.
The commercial center, the development of the headquarters economy, and the creation of the Zuoying Station Project to complete the North Kaohsiung Gateway Project, bring
To promote the transformation and development of North Kaohsiung.
Among them, Shang-San A and B bases were selected as the most favorable applicants in March, with an estimated investment of 188,000 yen.
With a total development capacity of nearly 70,000 pings, three aboveground 26-story buildings, the planning of about 37,000 pings of Class A intellectual property rights.
Commercial office, providing TSMC peripheral manufacturers to move in, the whole project combines A-grade commercial office building, meeting space, catering,
A boutique hotel and smart tech house complex.
The city government pointed out that with TSMC's recent announcement of investing in a 2nm process in Kaohsiung, and the project is expected to be completed by 2025, it is expected that TSMC will invest in a 2nm process in Kaohsiung.
With the commencement of mass production, the strong development momentum will attract more manufacturers to move in. The resulting commercial and office
The demand for public services, living and other daily necessities will also flourish, and in the future, it is expected that technological talents will migrate to the Mainland for employment and will be able to work in the Mainland.
The "one-day living circle" created by the high-speed rail will make "living by high-speed rail" the life style of high-tech talents.
Live everyday.
At the same time, the high city government and the central government have started to plan the road network around the Zuoying High Speed Rail Station to create a complete link between the station and the city.
In addition, the Nanti Industrial Park is 5 minutes away to the north, connecting to the National Highway 10 to the south, and going directly to the National Highway to the east.
In the future, High Speed Rail Zuoying will become the most important transportation hub in North Kaohsiung, including High Speed Rail No. 1, High Speed Rail No. 2 and National High Speed Rail No. 7.
Through the door.
6. Runlong actively hunts for land to replenish inventory and buys 1.3 billion dollars of land in Kaohsiung Lingya for Capital Construction.
2024.07.02 Economic Daily News I By Manning Zhu / Taipei Reporter
Hing Fu Fat (2542), a subsidiary of Hing Fu Fat (2542), is optimistic about the technology industry expanding its factories to the south and is actively pursuing the construction of Siu Kam Chi Run Long.
Land. Yunlong Construction (1808) announced on the 10th of October that it has bought a piece of land in Lingya District, Kaohsiung City from Capital City (2524) Construction.
The land exchange is for four pieces of land with a site area of about 440.74 ping and a total value of about $1,311 million, including Lot 60-1 of the Kung Kung section, for a total value of about $1,311 million, with a total value of about $1,311 million.
The unit price per ping was calculated to be $2,976,400, which is the second highest record for a land transaction in the district.
Mr. Lin Wei Jun, General Manager of Runlong Construction, said that there is a high demand for housing in Taiwan, especially in the southern region, which is benefiting from the new housing market.
The performance of the technology industry has been the strongest, and the layout of the southern part of the country is almost out of stock.
With the acquisition of this site, we will continue to expand our land development in the south-central part of the city, and will also seek to develop more land in the northern part of the city.
Overall, the company's layout centers around Liudu, Keelung and Hsinchu counties.
Lin Wei Jun said that although there are fewer completion cases this year, Runlong is expected to have two construction projects completed and credited this year.
The volume of completed projects also exceeded $10 billion, including the $8.8 billion Keelung "Dreamland", which has been delivered since March.
The "King On Cultural Centre" project, with a total sales of $2.3 billion, is targeted to be completed and handed over by the end of this year.
Lin Wei Jun said that in addition to the "Windsor Castle" case, which has been sold out for 6.7 billion RMB this year, the following is the first time for the company to sell its products in the market.
The Wenshan Wanfang section will be launched in advance, and the total sales are expected to reach NT$10 billion, while Taichung will have a total sales of NT$11 billion.
The "Contemporary Shoufu" project in Xitun District with a total sales volume of $6.8 billion and the "Cultural and Commercial 11" project with a total sales volume of $6.8 billion will be launched this year.
The volume is as high as $30 billion.
Looking into the future, Lin Wei Jun said that the new youth home loan period will be until July 2026, and the first purchase, small and medium-sized home loans will be available for the first time.
The willingness of the capitalists to enter the market is strong, and this year the housing market is still characterized by low total price and small-sized properties.
The company continues to plan for small house, small two-house and 2+1 room products with good location and low total price.
Not only can they be used for self-occupation, they can also be used for home ownership and rental purposes. In addition, there is still a lot of capital in the market.
With the mentality of buying a house to fight inflation, the housing market is expected to move towards a slow rise.