Taiwan’s total retail sales recorded solid growth of 4.8% y-o-y in the first two months of Q4 2019, supported by annual shopping festivals held by department stores and shopping centres. While the increase in total retail sales was also driven by strong automobile sales, core retail sales excluding cars and gasoline rose by 3.9% y-o-y.
Average high street rents in Taipei declined slightly by 1.1% q-o-q in Q4 2019 as some landlords in selected shopping districts cut rents significantly to fill vacant space. Nevertheless, retail rents in Ximenting continued to defy the downward trend, increasing by 3.5% q-o-q.
Average high street rents in Taipei are forecast to gradually stabilise over the course of 2020, although some landlords of vacant stores may further lower asking rents to lure cost-conscious retailers.