Tech sector leads Taipei CBD leasing surge

• Leasing activity in Taipei’s CBD reached 13,100 ping (43,300 sqm) in Q1 2026, registering 20% y-o-y growth. The robust absorption was driven by ongoing office upgrade demand and multinational corporations establishing new operational presences in the market.
• From an industry perspective,technology companies dominated leasing activity at 38%, absorbing over 4,000 ping fueled by AI-driven expansion. Financial services followed as the second-largest sector, accounting for nearly 30% of total leasing volume.

Strong absorption offsets new supply pressure

• Despite fresh supply in the market, Taipei’s CBD showed resilience with 4,547 ping absorbed in Q1 2026 and vacancy holding at 6.4%.
• The modest vacancy uptick was cushioned by steady tenant activity and some landlords reclaiming space for themselves. A few are now bringing in co-working operators to fill vacancies faster.

Stable-income assets gain strategic priority amid uncertainty

• From a capital markets perspective, office offer inflation hedging and value preservation, making them critical defensive holdings in developer portfolios, especially amid heightened geopolitical tensions in the Middle East.
• A notable example is Highwealth Construction Corp’s TWD 6 billion acquisition of the TransGlobe Life Insurance Xinyi Office, targeting stable rental income in the short term while securing land inventory for potential future residential redevelopment.

Outlook: Limited supply until 2028 influx

• New supply totalling approximately 59,000 ping is expected in Taipei’s CBD this year, with nearly half designated for owner-occupation, keeping vacancy stable. Substantial supply influx will not occur until 2028, when deliveries are forecast to reach 110,000 ping.
• The Taipei Main Station district will face the most intense absorption pressure during the 2028-2029 period. Rental performance is expected to diverge during this timeframe as the market adjusts to the concentrated supply wave.