Commercial realty predicted to heat up in Q3

The China Post news staff

An expert said yesterday that the commercial real estate market will pick up steam in the third quarter after buyers and sellers narrow their disagreement over prices. Chao Cheng-yi, president of the Taiwan operations of Jones Lang LaSalle, made the remarks after weak sales in the first quarter.

Jones Lang LaSalle earlier this week said that the global commercial property market had sales of US$75 billion in the first quarter, a decline of 23 percent year-on-year, on an economic slowdown across the world. Arthur de Haast, chief executive of Jones Lang LaSalle, said that while sales experienced a decline in the first quarter, demands for commercial real estate are still there and are expected to prop up the market this year. Among the bigger growth markets, the United States reported a sales growth of 16 percent, among other positive economic indicators. Sales in Canada and Mexico meanwhile grew over 50 percent year-on-year. As for Taiwan’s commercial property market, sales were suffocating in the first quarter at NT$4.5 billion, an 80-percent decline from the NT$20.1 billion for the first three months of 2011, said Chao. “While foreign and local capital is still abundant, there is still a disagreement between buyers and sellers over price,” Chao said. “It is expected sales will expand after the third quarter. Yet sales for the whole year are still expected to decline from 2011.” According to other real estate reports, sales of commercial properties across the globe totaled US$418 billion last year, the fourth highest in history. According to them, sales are expected to remain the same in 2012, at about US$400 billion.