Surging demand for Taiwan’s ICT products is benefiting the commercial real estate market as companies invest in new production facilities and offices.
Taiwan’s pivotal role in global tech supply chains is fueling growth in its commercial real estate sector, with appetite increasing for offices and manufacturing space, despite broader economic uncertainties linked to volatility in U.S. trade policy.
Data compiled by property advisor Savills Taiwan show that deals involving commercial assets priced above NT$300 million (US$10.1 million) increased 5.5% year-over-year (YoY) to NT$30.7 billion in the second quarter. The uptick in deals brought transaction value for the first six months of the year to NT$81.7 billion, up 13% over the same period in 2024.
“Demand from the tech sector, especially the semiconductor industry, is driving growth in manufacturing facilities and office space throughout Taiwan,” says Ping Lee, head of research for CBRE Taiwan, the world’s largest commercial real estate services and investment firm. “High-tech manufacturers are seeking good-quality existing plants to increase production capacity.”
Taiwan’s exports rose 25.9% YoY in the first half of the year, reaching a record US$283 billion, driven by an annual increase in ICT and audiovisual exports, as well as shipments of electronic components, according to a July report by the Ministry of Finance (MOF).
TSMC, the world’s largest contract chipmaker, posted a record profit of NT$398 billion in the second quarter. Its high-performance computing division, which includes AI and 5G applications, accounted for 60% of sales in the quarter.
“The booming development of innovative applications such as artificial intelligence has continued to boost demand for Taiwan’s semiconductor and information and communication products, driving domestic related supply chain manufacturers to expand their investment,” the MOF said in a July report.
Industrial assets accounted for the lion’s share of commercial property transactions in the first half of the year, including 90% of transaction value in the second quarter, according to Savills.
Key transactions in the second quarter included Global View Co., a Taiwan-based company specializing in electronic learning devices and property leasing, acquiring a modern logistics center in Taoyuan’s Yangmei District for NT$6.24 billion, and Pegatron’s purchase of HTC’s factory office in Taoyuan’s Guishan Industrial Park for NT$5.63 billion.
Companies are investing in Tao-yuan’s commercial property market given its favorable location close to Taiwan’s largest international airport and capital city of Taipei, says Christina Yu, head of leasing advisory at Jones Lang LaSalle Taiwan, a global real estate services firm.
Earlier in the year, U.S. multinational Micron Technology bought AU Optronics’ (AUO) Houli plant, located near Taichung in central Taiwan. This purchase, along with several other AUO facilities acquired in 2024, brings the total transaction value to NT$8.1 billion.
In May, Nvidia CEO Jensen Huang announced that the AI giant would build a new overseas headquarters in Taipei’s Beitou-Shilin Technology Park (BSTP). The development, named “Nvidia Constellation,” is located beside the Zhishan MRT Station, offering strong connectivity and substantial development potential.
The announcement has reinvigorated interest in BSTP, an area that had previously seen sluggish presale activity. Brokers report a marked uptick in inquiries from both buyers and developers, with Nvidia’s commitment signaling renewed confidence in the area’s long-term prospects.
Over time, the project is expected to catalyze an industrial clustering effect, attracting companies involved in AI, smart health, and information technology — the very sectors BSTP was designed to support as Taipei’s third major tech park after Neihu and Nangang.
The proximity of Nvidia Constellation to other large-scale developments, such as the forthcoming Kinpo Group headquarters, points to a growing ecosystem of high-specification offices and R&D facilities. Real estate professionals anticipate rising demand from international firms and suppliers looking to integrate into Nvidia’s operations, particularly in semiconductors and data infrastructure. These dynamics are already putting upward pressure on property values in BSTP, which may begin to close the gap with Taipei’s more established tech districts as the area matures.
Southern tech corridor
Looking ahead, Yu expects that office and industrial property development in southern Taiwan will continue in line with a government objective of developing a southern tech corridor from Tainan to Kaohsiung. While Southern Taiwan’s largest city is best known for heavy industry, “the government wants to transform Kaohsiung into more of a high-tech hub and is encouraging companies to set up factories and offices there,” she says.
The government has been promoting the development of the Asia New Bay Area (ANBA) in Kaohsiung, a 1,500-acre industrial, exhibition, and cultural site near the city’s downtown. The major construction project is aimed at driving Kaohsiung City’s industrial transformation, with the goal of promoting the urban development of both Kaohsiung Harbor and downtown Kaohsiung.
The area has already attracted investments from companies such as AUO, Cisco, Foxconn, Genesis, and Pegatron. In a March news release, the government reported that the ANBA hub has drawn 175 tech businesses, although it provided no further details beyond the five aforementioned companies.
For its part, TSMC is starting production of its fourth and fifth wafer fabs, P4 and P5, in Kaohsiung this year, completing its planned expansion in the city. TSMC’s leadership announced in March that the company would invest NT$1.5 trillion in its Kaohsiung operations to expand its advanced 2-nanometer chip production capacity.
In addition, Taiwanese media reported earlier this year that TSMC plans to build an ultra-advanced 1-nanometer fab in Tainan’s Shalun District. “The site selection aims to enhance the synergy of TSMC’s advanced manufacturing cluster in southern Taiwan while integrating with Taiwan’s broader semiconductor ecosystem, which includes science parks in Chiayi, Kaohsiung, and Pingtung,” market intelligence firm TrendForce said in a February research note.
Managing uncertainty
Despite Taiwan’s strong economic fundamentals, analysts see some headwinds for the commercial real estate market in the second half of the year. Chief among them is the potential impact of U.S. tariffs on Taiwan’s export-dependent economy.
“While transactional volume was quite good in the first half of the year and developers have plenty of cash, many companies are now in wait-and-see mode,” says CBRE’s Lee.
She notes that Taiwan’s surging exports in the first half of the year, though reflective of strong demand for its ICT products, also reflected frontloading of shipments to get ahead of possible new tariffs. With that in mind, even if the ultimate U.S. tariff rate on Taiwan is not too high, the economy will likely slow in the second half of the year, she says.
The semi-governmental Chung-Hua Institution for Economic Research (CIER) said in July that Taiwan’s GDP growth is expected to slow sharply in the second half of the year to 1.08% from 5.17% in the first half, with overall growth for the year projected to be 3.05%. CIER expects export growth of 6.71% in the third quarter and 2.55% in the fourth, down from 20.29% in the first quarter and 27.12% in the second.
Amid this uncertainty, corporate expansion strategies in Taiwan have become more cautious, leading to a more measured approach to office leasing. According to global real estate company Cushman & Wakefield, some tenants are extending negotiation periods, shifting away from planned relocations, and opting for lease renewals instead.
The impact of the weakening economy is expected to be particularly pronounced in the market for older buildings. As industries increasingly demand features like smart and green building systems, older properties lacking modern infrastructure or green building certifications are projected to face heightened competition, mounting pressure on rental rates, Cushman & Wakefield said in a report. As additional supply gradually enters the market, however, some landlords of older properties are responding by boosting competitiveness through building and system upgrades, along with offering more flexible lease terms.
