Buildings Under One Year Old and Pre-leased Space Drive Surge in Lease Volume

• Taipei CBD leasing volume reached 10,900 ping in Q1 2025, marking an 18% q-o-q increase. Newly completed and pre-leased buildings drove a significant rise in transactions over 700 ping, accounting for 20% of total deals—up 16% y-o-y and 8% q-o-q.
• The Others submarket recorded 6,700 ping in leasing volume, equivalent to 61% of CBD transactions—a historical high—driven by urban renewal of Grade B buildings and corporate office upgrades.

Taipei CBD Continues to Absorb 2024 New Supply; Vacancy Rate Drops 0.6% to 6.4%

• The Others submarket led absorption, mainly in new buildings released in 2024, with vacancy down 2.3 % to 8.7%. Xinyi absorbed both new and released Grade A space, lowering vacancy by 0.7 ppt to 7.7%.
• Dunhua South and North submarkets saw vacancy rates rise by 0.5–0.7% due to tenant space adjustments.

Taipei CBD Rental Growth Marginally Outpaces Q4 2024

• In Q1 2025, Taipei CBD’s net effective rent reached NTD 3,002 per ping per month, reflecting a quarterly increase of 0.3%. However, the annual growth rate declined from 1.2% in Q4 2024 to 0.9%, indicating a deceleration in long-term growth momentum.
• The Others submarket, propelled by the Huang Hsiang Taipei Main Station Building, achieved the highest quarterly rental growth at 0.4% across submarkets. The introduction of new buildings in the west zone is anticipated to further stimulate rental growth.

Outlook: Economic Uncertainty Delays Corporate Leasing Decisions

• Amid ongoing economic fluctuations, corporate tenants are expected to exercise caution in their leasing strategies, potentially leading to postponed commitments and a preference for lease renewals over new leases or expansions.
• As market competition intensifies and the economy is projected to slow, firms may find this an opportune time to secure leases with favorable terms, particularly given the anticipated increase in available office space.