Date: Oct 22, 2015
By: Crystal Hsu / Staff reporter
The nation’s commercial property market might continue to stall unless financial regulators agree to lower yield requirements for life insurance companies, analysts said yesterday after two top-tier office buildings this week failed to secure any buyers.
The Financial Supervisory Commission’s Insurance Bureau said it would review the restriction by the end of the year after Taiwan Insurance Institute (保發中心) wraps up a study on the issue.
“The yield requirement should have an inverse relationship with investment risks and a 2.5 percent minimum is more reasonable,” from the current 2.805 percent, in regulating property investments by domestic life insurance companies, said Tony Chao (趙正義), managing director of international property consultancy Jones Lang LaSalle’s Taiwan office. [FULL STORY]