Taiwan Industrial 1H/2022

The industrial property market is highly connected with the performance of Taiwan’s technology industry. Over the last two years, Taiwan’s economy has performed well, with GDP growth expected to reach four percent in 2022. Even though Taiwan is facing a new wave of COVID-19 infections, the government has updated its zero-COVID policy and decided to live with the virus which has in turn made the production lines of the manufacturing and technology sectors more resilient. Exports in 2021 increased 29% YoY to NT$400 billion, the highest level in ten years, which helped GDP growth hit 6.45%. The semiconductor industry plays a critical role and contributes 18% to GDP and coupled with its contribution of the supply chain, this number rises to 40%. TSMC, a leading company which accounted for 26% of global semiconductor sales, announced that it would spend US$100 billion over the next three years to expand its chip fabrication capacity, which will further encourage the supply chain to deepen its roots in Taiwan.

INDUSTRIAL LAND PRICES RISE BY 6% OVER THE FIRST FIVE MONTHS

The industrial property market has been active since 2017 and annual transaction volumes grew by 22% compared with the previous year to NT$141.9 billion in 2021, a record high. In terms of property types, sales of industrial offices doubled from the previous year to NT$52 billion while industrial land and factories remained stable, totaling NT$90 billion.