Retail sales reached a record high of NT$745 billion in October and November combined, although growth stood at just 0.7% y-o-y due mainly to the higher base of comparison with 2017. Local stock market volatility also prompted consumers to become more conservative toward spending, with the TAIEX falling 12% in Q4 2018.
Retail rents in Taipei were flat in Q4 2018 after declining for three consecutive quarters. Only a limited number of leasing transactions were concluded during the quarter as several landlords of retail space in prime locations lowered asking rents to secure tenants.
Average high street rents in Taipei are expected to be stable in the next few quarters as landlords generally adopt a more realistic attitude towards rents.