Taipei office capital values were stable as sellers adopted a realistic attitude towards pricing. Prime office yields rose slightly to 2.6% on account of the modest rental growth registered over the period.
Office net absorption in Taipei remained stable at 11,668 ping in Q1 2019, marking the fourth consecutive quarter of strong take-up. Leasing activity was driven by relocations and expansions by companies in the technology and chemicals industries.
Grade A office leasing demand will likely remain strong in the coming quarters, led by tech firms and coworking operators. Enquires for Grade B offices are expected to be robust. Nevertheless, low vacancy rates in most Grade B office buildings suggest that space options for medium- and large-sized companies are limited.