Taiwan's industrial property deals hit record high in first half on tech expansion

Taiwan's industrial property market has seen a historic surge, with transaction values hitting NT$139.2 billion in the first half of the year, largely propelled by the expansion plans of major tech firms. Companies such as ASE Technology, Micron, and Taipower have been actively acquiring manufacturing facilities, underscoring a significant boom in the sector.

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Industrial real estate is very different from offices and residences, and even has a higher threshold for real estate knowledge and diverse industry customization needs.

Industry experts caution that investing in industrial property requires specialized knowledge beyond typical real estate considerations. Lin San-chih, general manager of Xinyi Global Assets, emphasizes the need for buyers to meticulously assess their specific operational needs. Rushing into purchases based solely on market conditions or price could lead to properties unsuitable for production, resulting in costly relocation or renovation.

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If one rushes to enter the market solely based on good market conditions, good location, or low prices, while ignoring the details of their own industry's operational needs, they are very likely to face the predicament of 'buying but being unable to produce,' which will instead lead to secondary relocation or renovation costs.

Key factors for successful industrial property acquisition include verifying legal compliance, such as land use zoning and building permits. The physical infrastructure is also critical; tech companies need confirmation of adequate power and water supply, while manufacturers require high ceilings and robust floor loads for heavy machinery. Logistics firms must prioritize efficient vehicle access and loading docks.

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First, it is necessary to confirm the legality, including whether the land use zoning meets the requirements of its own industry category, whether the registered use of the building permit and completion certificate is consistent, and whether it can legally register the factory.

Furthermore, environmental regulations are paramount. Companies must ensure their processes comply with wastewater, exhaust, and noise pollution standards. In the era of green supply chains, properties equipped with water-saving facilities or solar power systems are increasingly important, as they align with international green manufacturing standards and can impact a company's ability to secure orders and maintain its position in the global market.

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Different industries have different requirements for factory specifications and hardware facilities.