You might be aware that everyone around the world must be working in some office or the other. However, it is not possible for every company to buy its own property to make an office out of it. This is the reason why the majority of the companies, especially startups, rent their offices instead of just buying them. Same is the case in Taiwan, including the capital city of Taipei too which is considered to be the technology hub of the island nation.
At the moment, we know that there are hundreds of companies in Taiwan operating out of an office. Also, we have various startups who are renting office space for the companies and one of the most famous-yet-controversial ones is WeWork. However, we have also seen many companies that rent their own offices rather than renting space. Talking about the rents in Taiwan including Taipei city, we know that they are already high for the companies but they are manageable right now.
But a new report reveals that the office space cost will increase in the next 3 years in the city of Taipei because of the increasing rents for different locations. This is because of the vacancy rate for premium grade office space dropping in last quarter of 2019 to just 3.2%. Looking at the numbers, you can see that the offices are not being vacated in the city which means that space is getting lesser and lesser. Thus, we can imagine that the owners of these office spaces will increase their rent due to the increase in demand.
As per the official data for 2019, the property market in Taiwan stood at around NT$1,906 per ping per month. Now, this data is regarding the most closely watched space which is obviously going to be much higher than the rest. Also, Collier’s data reveals that 23,000-30,000 ping in space will be occupied in 2020 which will make space even lower.