Steady Absorption of New Supply With Over 70% in New Buildings
According to Cushman & Wakefield, since the opening of Fubon A25 in Xinyi District, a total of 10 new Grade A office buildings have entered the Taipei market over the past three years. Excluding corporate owner-occupied headquarters, cumulative leasable area for external leasing totals about 88,000 ping, with more than 50,000 ping occupied as of Q3 2026, accounting for about 60%. According to JLL, total Grade A office transaction volume in Taipei reached 12,279 ping in the third quarter, up 8% from the same period last year, with over 70% concentrated in newly completed office buildings, showing companies continue to strengthen operational efficiency and corporate image through office upgrades.
Core Area Rents Edge Up as Financial Sector Recovers
Transaction volume in Taipei's core business district reached 6,689 ping in the third quarter, accounting for 54% of the total, of which the Xinyi submarket accounted for 55% of the core area, driven by a single 1,400-ping deal at Taipei Dome International Center, followed by other submarkets at 35%, benefiting from absorption at Shin Kong Huashan Financial Center and Huang Hsiang Taipei Plaza. By tenant mix, the finance, insurance industry saw the largest increase, with its share climbing from 6% last quarter to 26%. The vacancy rate in the core area was 5.8%, up 0.7 percentage points from the previous quarter, mainly due to the entry of Cathay RD Center, while average rent was NT$3,293 per ping per month, up 0.32% quarter-on-quarter and 2.3% year-on-year.
Nangang Hits Seven-Quarter High While Neihu Diverges
The Nangang business district recorded 5,590 ping in transactions in the third quarter, accounting for about 46% of the total and hitting a seven-quarter high, mainly from Cathay C3 and Chunghwa Telecom's Nangang Building, with three deals over 1,000 ping. The vacancy rate fell 2.4 percentage points quarter-on-quarter to 17.1%, with an average building age of only 5.4 years and products within five years accounting for 53%, with the technology sector accounting for 42% and the energy sector 22%. The Neihu market averaged NT$1,443 per ping per month, with Xihu Section at 1,555 and Wende Section at 1,096. The vacancy rate for Neihu factory offices fell from 11.1% to 10.3%, with Xihu Section down to 5.5%, while average rents remained stable.
2028 to See Supply Peak as Older Buildings Face Renewal
As of the third quarter, nearly half of the stock in Taipei's core business district is over 20 years old, with an average building age of about 16.5 years, while new offices within two years old accounted for 71% of leased space. The citywide average vacancy rate edged up to 7.3%, with average rent flat at NT$2,860 per ping per month, led by Xinyi District at 3,490, and new buildings transacted at about NT$3,300 to 4,000. Net absorption totaled about 15,000 ping in the first three quarters, with the Global Life headquarters building and the NTU Jianguo Campus industrial R&D center totaling about 27,100 ping in the fourth quarter, and full-year absorption estimated at about 25,000 ping. About 306,000 ping will be released by 2030, with a supply peak in 2028.