Taiwan's industrial real estate market welcomes a wave of "retreat and advance". According to statistics, the commercial non-operating transaction volume of listed counter legal entities in the first eight months of this year reached 93.8 billion yuan, while industrial real estate accounted for 56.2 billion yuan, exceeding 60%, becoming the focus of the market. The old-fashioned manufacturing industry continues to sell idle factory buildings, and release funds to meet research and development, upgrades or tax restrictions; at the same time, the strong and still expanding enterprises will make an active entry-level layout. Is this trading trend of retreating and upgrading the market representing a transformation of industry machines or forced choices under the pressure of enterprises?

This year, Taiwan's industrial real estate market is quite popular. A pencil transaction shows that the factory is no longer just a place to carry production lines, but a code for corporate flexibly adjusting assets.

From the withdrawal of old-fashioned large factories to the entry of new-tech enterprises, this "retreat and advance" transaction wave also reveals another aspect of Taiwan's industry transformation. Under the international situation and tax pressure, the asset activation of enterprises is more practical and more realistic than the outside world imagines.

Xinyi Global Assets Statistics, the cumulative commercial non-operating transactions of listed counter legal entities in the first eight months of this year reached 93.8 billion yuan, and industrial real estate accounts for 56.2 billion yuan, more than 60%. If we focus on the five months from April to August, the transaction volume was 44.3 billion yuan, a decrease of 12% compared with the same period last year, indicating that under the influence of the US "tax-related" policy, the buyer's attitude is more cautious, and the seller's negotiation process has also been relatively extended.

Observe the role of the two parties in the transaction. Most of the sellers are old-fashioned companies that have been popular in the past. Youda, Hongda Electric, Strongmao semiconductors, and even the old-fashioned Taifeng tires all choose to sell low-use or leisurely houses. For these companies, it is not only a return of funds, but also an asset activation strategy, allowing companies to reinvest funds in R&D, upgrade their production lines, or use them to respond to international tax risks.

At the same time, the buyer showed a completely different appearance. Taida Electric acquired Taifeng Wheel Tire Audio Factory for RMB 6.95 billion in July, creating the largest transaction record of industrial real estate this year, because the location is tightly located in Taida Electric China Power Headquarters, which will help resource integration and long-term development.

Most buyers like Tel.com are in the expansion period, with strong financial strength and can take advantage of the layout and fill in the space left by veteran companies' withdrawals.

▲ Taida Electric purchased Taifeng Wheel Tire Audio Factory for RMB 6.95 billion in July, creating the largest transaction record of industrial real estate this year. (Source: Taoyuan Municipal Government)

Assets have been revitalized into mainstream, and old-fashioned factories have been actively located in separate factories

"In this year's market, the sales agency's division of labor does not operate, and the majority of the companies are asset activation." Lin Sanzhi, general manager of Xinyi Global Assets, said bluntly that there are three main uses after fund recycling. First, we will invest in commercial non-operating industries that are more in line with the needs of enterprises' development; second, we will invest in research and development and transformation and upgrading to strengthen competition; third, we will increase operational funds, focus on the industry and reduce tax damage risks.

Lin Jian-hyun, Xinyi Global Asset Manager, emphasized the changes in the industry structure. He pointed out that most sellers come from traditional manufacturing industries, including metal, chemical and raw materials, or capital-intensive industries, and most of them accumulated land assets in their early years. Now they choose to sell and transform. He also noticed that the buyers are medium and large enterprises, especially high-tech and global companies. Even if they face tax pressure, they still show their ability to change and continue to make arrangements.

When discussing the operation of the division motor, Lin Jianhui pointed out that some enterprises choose to sell assets due to operating pressure or predicted industry prospects and return funds to their capital; the other part is to buy larger and newer houses by freely or unsuitable assets. Transaction cases of various industrial properties show that under the current situation, companies have to re-examine their assets and maintain their vitality and cash flow through purchases.

▲ Industrial real estate transaction case of a listing counter legal person of more than 10 billion yuan in 2025. (Source: Xinyi Global Assets)

Under tax pressure, enterprises are more cautious in buying and selling assets

It must be noted that the US "equity tax" policy also affects industrial real estate transactions. After the U.S. announced its policy in April, many export-oriented manufacturing companies felt the additional cost pressure. Data showed that the trading volume of industrial real estate from April to August was 44.3 billion yuan, a decrease of 12% from the same period last year, indicating that the policy has indeed made buyers more cautious and the sellers' negotiation process has also been extended.

Lin Sanzhi reminds that sellers with asset management needs and timely pressure to recover funds should adjust their price expectations according to the actual price listing and market trends, and adjust their price expectations appropriately to accelerate the completion of transactions. He emphasized that early recovery of funds will not only help in operational layout, but also retain more flexibility for the company's transformation strategy. Lin Jianxuan said that some industries are actually forced to transform. Some companies must quickly adjust their layout due to tax responsibilities and international affairs, which has high cost and great challenges.

During the 2018 US-China trade war in Taiwan, a wave of high-level industries returning to Taiwan was set off. The difference is that today's pressure comes from more complex international affairs and trade walls, and enterprises must balance funds, technology and supply chains, which is even more difficult. With the trading amount starting from 10 billion yuan, industrial real estate is gradually moving towards financialization, no longer just a physical asset used by enterprises, but can be used to adjust funds, activate assets, and even become part of financial commodities.

The wave of industrial real estate transactions in Taiwan is not only a simple asset purchase and sale, but also a shrinking of industry transformation. Old-established enterprises withdraw, funds are transferred to research and development and upgrades, and new buyers make an aggressive layout to form a new market situation. Faced with challenges of multiple changes, factories have long surpassed the role of production lines and have become the key code for enterprise flexibility adjustment, and also reflect the inevitable path for Taiwan's manufacturing industry to effectively adjust and continue to evolve under the actual pressure.