Commercial real estate investors face losses in Taipei and Hong Kong

Commercial real estate investors in Taipei and Hong Kong are facing significant market downturns, characterized by falling rents and substantial capital losses on property holdings.

In Taipei's East District, prominent investor Liu Yuechai has been adjusting her strategy to cope with a cooling market. Some of her retail properties have seen rental income drop significantly; for instance, a corner shop previously leased to a travel agency for 1 million TWD per month is now reportedly leased for 600,000 TWD. Other properties have been listed for sale at reduced prices, such as a 128-坪 unit originally priced at 330 million TWD that was lowered to 228 million TWD in 2023.

In Hong Kong, the owner of a commercial unit in Tai Po housing the renowned Man Hing Restaurant sold the property for approximately 39 million HKD. Having purchased the space for 82.6 million HKD during the 2018 market peak, the owner realized a loss of over 43 million HKD, representing a 53% evaporation of book value despite the tenant's international reputation.