Office capital values were stable as investors remained cost sensitive. Taipei prime office yields stayed unchanged despite moderate growth in average office rents.

Leasing activity in Taipei was stable in Q4 2019, with total net absorption rising modestly to 8,164 ping. Upgrading and relocation demand from technology companies continued to drive leasing transactions this quarter, while flexible workspace operators also remained active in expanding their footprint.

While enquiry levels in the Grade A office sector are expected to be robust in the near term, leasing deals will likely decline due to the limited relocation options available for occupiers. Grade B office rents are set to register moderate growth in the next few quarters as landlords gain the upper hand in negotiations.