Taiwan’s retail sector performed strongly in Q3 2019, with total retail sales rising by 5.7% y-o-y in July and August combined. Cars sales grew by double digits while core retail sales (excluding automobiles and gasoline) increased by 5.5% y-o-y, indicating improved consumer sentiment. Local consumers were seen to spend more, encouraged by promotional campaigns around the Ghost Festival and the back-to-school season.
Average high street rents in Taipei fell marginally by 0.14% in Q3 2019 amid mixed performance in major shopping districts. Retail rents in Ximenting edged up by 2.1% q-o-q as retail space remained sought after by pharmacies and beauty retailers. In contrast, rents along Zhongxiao East Road fell by a further 0.5% q-o-q during the quarter as landlords adopted a more flexible stance towards rents to fill vacant space.
Average high street rents in Taipei are forecast to fall slightly in the next few quarters as landlords in selected shopping areas turn more willing to cut rents to attract cost-conscious retailers.