Date: Thursday, 14 May 2009

Taipei’s commercial property market is currently undergoing its most drastic correction on record. During the first quarter of this year, the overall vacancy rate leapt 2.8 percentage points to 9.9%, marking the largest quarterly increase ever. After making allowances for new supply, it seems plausible that the vacancy rate could top 20% before the end of 2009. Average rental rates slid 3.4% to NT$2,486 per ping per month. The precipitous drop is the largest quarterly fall in rental rates since the second quarter of 2003, a year marked by the SARS contagion. Taiwan’s inhabitants now report the lowest level of consumer confidence since the survey began, with retail sales aptly reflecting this sentiment.

Despite all the gloom and doom, the investment market was not nearly as disappointing, with two successful auctions for prominent assets taking place. Furthermore, sights of interest to Chinese tourists are emerging as investment hotspots and, in the latest round of talks between China and Taiwan, the number of direct flights was lifted from 108 to 270 per week. This presentation will endeavour to provide an accurate view of Taipei’s commercial property market, with a glimpse at what to expect going forward.

About the Speaker(s)

Mr. Jeffrey Hurren leads the research department of the Taipei office of Jones Lang LaSalle. He is responsible for research publications and projects completed locally and regionally. The extent of this research is across all asset classes, with a focus on the Taipei Grade A office sector. He is also actively involved with the Investment Sales department, providing consultation to prospective investors. Within the scope of his duties, Mr. Hurren is responsible for giving market presentations to Jones Lang LaSalle clients and other organizations with interests in Taiwanese property markets.

About Jones Lang LaSalle

Jones Lang LaSalle (NYSE:JLL) is a professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2008 global revenue of US$2.7 billion, Jones Lang LaSalle serves clients in 60 countries from 750 locations worldwide, including 180 corporate offices. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.3 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with more than US$46 billion in assets under management. For further information, please visit the company’s web site at www.joneslanglasalle.com.