Taichung office building development

New City Hall is the hub for the city's newest office-building development

Article provided by Sunny FM
Translated by Angel Pu
Photos provided by Taichung Real Estate Development Association

This year's annual global meeting of the FIABCI real-estate federation in Taichung was a great success, thanks to joint efforts by the Taichung City Government and Taichung Real Estate Development Association, which showcased this city for the world to see. The FIABCI, in existence for 65 years, has 65 member states, and over 120 real estate associations. Every year, its annual congress is held in a different member nation to create an ideal communication platform for global real estate professionals.

The reason Taichung was given the opportunity to host the annual meeting is Taichung's recent stable development in technology, industry, culture, high-end housing and office buildings. According to Li Pei-yu, vice general manger of Ru Chun Real Estate, Taichung's office building market has attracting a growing number of business owners and investment professionals' attention.

Li points out that the city's earliest business district started around the railway station and expanded in a fan-like shape. Taichung Port Road (Taiwan Boulevard) and WenXin Road are Taichung's two most important thoroughfares, so most business offices are clustered on and around both roads, including areas in front of the railway station, near WuQuan Road, around Hotel National, the 5th Redevelopment Zone, and the entire length of Taichung Port Road. However, completion of the new Taichung City Hall has also created a new commercial zone, together with the high-end 7th Redevelopment Zone (Qiqi) and Fengjia shopping district, which have gradually replaced the old business zones near the railway station to become Taichung's newest commercial and government hubs.

are not only numerous high-end residential buildings and international hotels near the new city hall, but this area also has many commercial and office buildings. Numerous construction companies such as Lien Jade, Zong Tai, Ching Jia, High Wealth, Fong-yi, and Sweeten, known as developers of luxury residential buildings, are now beginning to erect office towers. In addition, the FSC (Financial Supervisory Commission) has eased investment rules governing life insurers. The estimated NT$100 billion-plus that this releases for investment in the real estate market will undoubtedly stimulate the commercial property market.

"There have been many major developments in Taichung, including the new city hall, Top City department store, the Taichung Metropolitan Opera House, Maple Valley Park and the BRT Blue Line and MRT Green Line stations," notes Lily Chang, chairwoman of Taichung Real Estate Development Association. "The 7th Redevelopment Zone has become a 'war zone' for new high-end residential buildings, office buildings and hotels for real estate and construction companies. It's like Taipei's Xinyi district in Taichung."

Currently, Lien Jade Construction Company, famous in Taichung for building luxury residences, is preparing to put up a high-end business tower on ShiZheng North 7th Road. This large, 39-story "Zhong Yong" Building will have no shops on its first floor but, rather, a lobby with 10-meter-high ceilings. It is projected that this new development will attract many China-invested local business owners returning to Taichung to set up headquarters offices.

Li also points out that Taichung's business buildings are a very good investment target because they're for business only, customers are more stable, and there is a higher Return On Investment of about 5%. This is based on the city's current ROI which compares favorably to Taipei's and offers less risk for the same amount of capital investment.