Taiwan expects record CRE sales in fourth quarter

Taiwan's commercial property sales during the fourth quarter could reach NT$45 billion (USD $1.49 billion), which would mark a year-high figure in large part due to the increased demand from domestic life insurance agencies, Tapei Times reports.

Gordon Kao, general manager of Savills Taiwan, said in a media conference that commercial property prices are expected to increase during 2012 as the supply of property is diminishing, the news source reports.

"The market will see more auctions of commercial properties in prime locations for the rest of this quarter, lifting the quarterly transactions to NT$45 billion," said Kao.

In sum, trading value is expected to increase to approximately NT$120 billion for the entire year so far totaling NT$100.6 billion, Kao added.

A REIT trust to be auctioned next week was issued by Tashin Financial Holdings, which includes two retail spaces and an office property in Tapei. Asking price for the properties will start at approximately NT$6.25 billion.

Kao stated that the increase CRE activity is a result of real-estate-backed securities investors understanding the potential of the country.