_Taipei ranked 5th most high-tech city in the world
Taipei ranked 5th most high-tech city in the world by 2thinknow - a research firm that specializes in analyzing innovative cities - surpassing its Asian competitors such as South Korea and Singapore to be ranked at the top for the region. Taipei is home to some of the largest PC companies in the world, including Asus, MSI, Gigabyte and Acer, while also scores highly in its number of venture capitalists.
Moreover, recently the government has made a proposal called 'Forward-Looking Infrastructure Development Program' to spend up to USD$14 billion for the next four years on national infrastructure.
Development of 'Forward-Looking Infrastructure' especially focuses on railway transport construction, digital development and urban and rural projects that will promote Asia's Silicon Valley plan and will bolster the R&D and manufacturing industry chain in Neihu, Nankang district and Taoyuan city respectively.
Occupier trends
The Taipei office market is competitive at present due to a fall in supply caused by urban regeneration and the conversion of office buildings to hotel use.
Nan Shan Plaza is scheduled for completion at the end of this year (2017), and it is expected to lift rental levels 3-5% for prime offices. However, the rental level of the prime office market in Taipei city is lower than some other international cities, which is expected to attract more companies to the Xinyi Planning District.
The main source of demand is expected to come from the Biotech, finance and software industries.
Taipei has surpassed its Asian competitors such as South Korea and Singapore to be ranked at the top for the region.
Commercial real estate market
Transaction volumes of commercial real estate in the first half of 2017 were comparable with those recorded in the same period of last year. Industrial property saw the highest levels of demand for built stock, but the land market was the most active.
C1D1, the most important investment project this year, will promote redevelopment in the west of Taipei city. The development is valued at over USD$2 billion provided by the government, making it the most important investment project in Taipei this year.
According to development plans, the buildings will stand 76 and 56 stories high. The lower, middle and upper sections of the towers will house retail stores, offices and hotel rooms, respectively.
Residential market
The housing transaction volume hit a historic low last year, but in the first half of 2017 sales grew by 20%, and there has been less downwards pressure on prices. As a result, buyers have gradually regained confidence.
For luxury residential housing transactions, developers have lowered prices to attract buyers. Luxury housing prices are estimated to decrease, and the transaction volume has slightly increased.