Taiwan CPI Data November 2012

World Economic data outlook - Taiwan CPI Data November 2012 : Due to weak private spending and price drops of vegetables, the annual growth of Taiwan’s consumer price index (CPI) declined to 1.59% in November, the lowest of its kind since May, according to the Directorate General of Budget, Accounting & Statistics (DGBAS).

taiwan property market outlook 2012

World Economic outlook - taiwan property market outlook 2012 : Taiwan’s commercial real estate market is expected to continue its growth into 2012, supported by a generally favourable economy and low interest rates. However, this could be dampened by any unexpected rises in interest rates and restrictions of financial lending policy by the Central Bank. These fears were allayed somewhat in September 2011 when Taiwan’s central bank decided not to raise interest following five straight quarters of rate hikes. Attention will now be focused on the health of the global economy. If the eurozone debt crisis were to spur another major financial crisis, falling demand from the US and Europe, as well as China and Japan, would hurt Taiwan’s largely export-oriented economy.

Economic data indicate the beginning of a slowdown of Taiwan's economy. Not only did Q211 GDP growth come in at 4.9% (down from 6.4% in Q111), industrial output and export orders trended down throughout the quarter.

In spite of slowing economy, commercial rental rates in Taipei are expected to grow across the board in 2012. In the office sub-sector, while demand for office space - especially from financial institutions and multinational corporations - has increased in Q211 to its highest level since 2006, supply will be restricted until at least 2012.

In the retail sub-sector, domestic and international retailers have both expanded operations, especially fast fashion retailers such as Zara. Retail supply will remain limited into 2012. Taiwan’s robust economy and manufacturing output have seen a high net absorption of high-spec industrial space, again in the face of limited supply. In May 2011, net take-up was at its highest level since April 2004.

Taiwan’s commercial property sector benefits from closer economic ties between Taiwan and mainland China. This includes the Memorandum of Understanding (MOU) for financial cooperation, the Economic Cooperation Framework Agreement (ECFA) and the new Chinese Free Independent Traveller (FIT) agreement, which increases the visiting rights of mainland Chinese individuals to Taiwan. The retail and hotel-tourism property sub-sectors are expected to benefit the most from the FIT agreement.

The Taiwanese government instituted a luxury tax in June 2011, largely to stabilise the housing market, one of the main sources of inflationary pressures on the economy, and to dissuade speculation. Anyone who sells vacant land and non-residential properties within two years of buying will have to pay a 10% levy, while those who sell with one year face a 15% tax. The measure has cooled down the residential property market as intended but the commercial property market has maintained its growth, despite the new tax.

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taiwan economic growth outlook 2012

World Economic outlook - taiwan economic growth outlook 2012 : The Polaris Research Institute cut its forecast Wednesday for Taiwan's 2012 economic growth, from 4.51 percent to 3.93 percent, citing weakening global demand. Polaris, one of Taiwan's leading economic think tanks, said the debt problems in the eurozone are expected to affect the growth of the world's economy and drag down global demand, which in turn will hurt Taiwan's exports.

The think tank has also revised downward it forecast for Taiwan's gross domestic product (GDP) growth for 2011 to 4.33 percent from of 4.73 percent based on similar concerns. The previous forecasts were made at the end of September but were revised in reflection of the fast changing world economy, the think tank said.