Savills Taiwan Ltd, the UK-listed real estate service provider said yesterday they expect Taiwanese life insurance companies and developers to invest TWD150 billion (US$5.08bn) in commercial properties in order to improve earnings and consume idle funds.
The provider expects both commercial and residential property prices to increase despite a number of government measures to cool the market. Managing director Cynthia Chu said, “funds will flow into the commercial property market this year, encouraged by stable rental incomes and low capital costs”
Chu believes domestic insurers will invest TWD90 billion (US$3.05bn) into property investment, foreign funds will contribute TWD30 billion (US$1.02bn) and local developers and investors will contribute an additional TWD billion (US$1.02bn).
Statistics released by Savills showed Asian markets generated 41.3 per cent of the company’s global revenue last year, an increase figure of 37.5 per cent.