Taiwan's Land Market Hits 13-Quarter Low Amid Strong Commercial Property Activity

Taiwan's land market experienced its slowest quarter in three years, with transaction values plummeting to 23.2 billion yuan in the second quarter of 2026. This figure represents a 24% decrease from the previous quarter and marks the lowest point since the second quarter of 2023, a span of 13 quarters. Overall land transaction value for the first half of the year accumulated to approximately 80.3 billion yuan, with developers accounting for 40.4 billion yuan, a 43% year-on-year decline.

However, the commercial property sector presented a contrasting picture, buoyed by strong economic growth. Transactions in this segment reached 56.1 billion yuan in the second quarter, bringing the first-half total to 159.1 billion yuan, nearly matching the entire transaction volume of the previous year. This resilience is largely attributed to demand from the semiconductor industry.

Factories and office buildings emerged as the most sought-after commercial properties, primarily for self-use purposes. Factory transactions alone accounted for 45.2 billion yuan in the second quarter, representing 80% of the quarter's total commercial property deals. The cumulative transaction value for factories in the first half of the year reached 130.3 billion yuan, nearly double the total for the entire previous year.

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Office buildings and factory-offices have been popular transaction targets in recent years, with buyers mostly driven by self-use needs.

ASE Technology Holding was a dominant force in the market, completing the top four factory deals in the second quarter. The group invested 14.85 billion yuan in acquiring a plant in Southern Taiwan Science Park and made further significant purchases in the same park and in the Zhunan Science Park. In total, ASE Technology Holding spent 29 billion yuan on factory acquisitions in the second quarter alone. Office transactions followed, with 5.75 billion yuan, and other industrial and office spaces (factory-office) at 3.87 billion yuan.

Looking ahead, the international political and economic landscape is stabilizing, with the impact of the U.S.-Iran conflict diminishing. The booming AI industry continues to drive demand, particularly benefiting Taiwan's semiconductor sector. Experts anticipate a continued self-use-driven trend in the commercial property market for the second half of the year. However, the concentration of prime factory opportunities among major players might encourage other companies to consider relocating or expanding to central and southern Taiwan due to talent and expansion needs.

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The international political and economic situation is gradually becoming clearer. The impact of the U.S.-Iran conflict at the end of the first quarter is gradually dissipating, and the AI industry is developing vigorously with no signs of slowing down. Taiwan's semiconductor advantage will continue to drive demand for factories, and the commercial real estate market is expected to maintain its self-use-oriented trend in the second half of the year.