The investment in the twin skyscrapers is part of an emerging trend of developers looking west in the capital city. Long considered an aging part of Taipei, capital inflows are giving new life to the area.
Construction of the twin skyscrapers near Taipei Main Station is expected to create significant business opportunities. Past investments include K Mall, which is on Zhongxiao West Road next to Shin Kong Mitsukoshi and across from the Main Station. Shin Kong Life invested almost NT$4 billion in the first floor shopping area. Its rate of return has been 2.6 percent.
This is an excellent opportunity for an insurance company. Even if you have money, it doesn’t mean you can buy something with such a good rate of return.
If Taipei Main Station is at the center, to one side is East Taipei and Xinyi District, and to the other side is Ximending. Many businesspeople say the potential for growth in the western part of the city is limitless. Old hotels are being renovated and turned into mid-priced accommodation. They attract visitors from Hong Kong and Japan.
Two years ago Taiwan Life bid NT$2.56 billion on the Chinfon Building on Nanyang Street. In August of this year, Fubon Life spent NT$6.7 billion on the Galaxy Building. The NT$17.33 million price per ping set a new record for Taiwan.
When storefronts in the western business district become available, they turn over one to two days faster than storefronts in the east. The main reason is the high price of prime areas in the east. In the future we may be able to see business turning away from the east and returning west.
Record investments in the Ximending area contrast the saturation seen in eastern Taipei commercial buildings. Western Taipei is making a case for once again becoming the center of development in the city.