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AI boom fuels demand for large commercial real estate in Taiwan

06/19/2024 08:27 PM
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CNA file photo
CNA file photo

Taipei, June 19 (CNA) The AI industry boom is driving a significant increase in demand for large commercial real estate in Taiwan, particularly for corporate headquarters, Sinyi Global Asset Management said Wednesday.

The firm's general manager Lin San-chi (林三智) said that as the era of AI dominance continues and amid industry self-use demand, businesses are competing to acquire land so they can consolidate their various units into a single headquarters.

Transactions for plots of land over 500 pings (one ping is equal to 3.3 square meters) are on the rise. Some financially strong corporate clients are focusing on acquiring plots over 1,000 pings, Lin said.

Some companies have specific building layout requirements, for example, they want the style to fit with their corporate culture, Lin said.

He added that buying land and building their headquarters from scratch often better meets a company's needs than purchasing and renovating an existing building.

Lin noted that the surge in commercial investments is particularly evident in science parks like Neihu Technology Park in Taipei.

This area is experiencing a clustering effect of listed companies establishing a presence. There is also a rising trend of companies consolidating their units into one headquarters.

According to Lin, developers and business owners are optimistic about growth potential and are actively acquiring land to construct headquarters, which has led to an increase in land acquisition.

According to Sinyi Global Asset Management's disclosed actual price registration data, land transactions in Neihu Technology Park have amounted to NT$43.3 billion (US$1.5 billion) since 2018.

(By He Hsiu-ling and Evelyn Yang)

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Google Taiwan's second building, which opened in New Taipei in April 2024. CNA file photo
Google Taiwan's second building, which opened in New Taipei in April 2024. CNA file photo
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