Following the Financial Supervisory Commission's decision in January 2025 to lower the minimum real estate yield standard for the insurance sector to 2.545%, the industry has actively adjusted its asset allocations throughout the year, reported United Daily News Taiwan.
According to data compiled by the Taiwan Real Estate Group Trend Center, which analysed real-price registrations and information from public observation stations, several significant commercial real estate transactions have taken place. Notably, in June, Mingtai Property Insurance sold an entire building located on Section 3, Sanmin Road, Taoyuan District for NT$120m ($3.9m). Earlier, in April, Shin Kong Life Insurance sold a portion of the "Changjiang Building" on Songjiang Road in Zhongshan District for NT$132m.
It is also reported that insurance companies are actively acquiring high-potential real estate assets.
In early August, Bank of Taiwan Life Insurance purchased the building housing the Bank of Taiwan’s Neihu branch for NT$460m, shifting from tenant to owner. Taiwan Life Insurance expanded its presence by acquiring its third office building in Neihu, buying the entire new office on Ankang Road for NT$1.478bn.
Earlier this year, Nan Shan Life Insurance acquired land in Yuanlin City, Changhua County, for NT$960m, planning to develop it for office space and investment purposes. Yuanta Life Insurance is also aggressively acquiring land rights, securing the former American Institute in Taiwan (AIT) site in Taipei’s Da’an District for NT$2.19bn and land on Songjiang Road in Zhongshan District for NT$2.177bn.
Industry experts said commercial office space remains a preferred investment for insurance companies due to its dual use for occupancy and rental, offering flexibility. With the housing market policy promoting stability, increased capital is flowing into commercial real estate, boosting demand. Insurers are leveraging this by selling value-added properties and shifting focus to medium- to long-term investments like land, industrial properties, and surface rights.
They also said the insurance industry’s investment focus is shifting away from older commercial offices in Taipei and New Taipei City toward more flexible assets like land and entire factory buildings. This trend targets developing areas and locations near key transport hubs such as MRT stations, industrial parks, and train stations. These assets offer opportunities for construction, renovation, or leaseback, potentially delivering higher returns of 3-5% and greater flexibility compared to traditional rental income from existing buildings.