Prime rents in Orchard Road have rebounded for the first time in nearly three years. That is according to a study by real estate consultancy CB Richard Ellis.
Rents rose 5 per cent from the second quarter of 2011, to average S$31.60 per square foot per month. Rents were S$30.11 per square foot per month in the last quarter.
The upturn follows a series of dips since 2008, when rents peaked at more than S$36 per square foot.
CBRE said new malls have attracted more retailers and have also forced a revamp of older properties.
It noted that there is almost full occupancy at shopping centres on Orchard Road, with a dominance by fast fashion brands. Retailers to have opened recently include swedish fashion house H&M at Orchard Building. Abercrombie & Fitch is set to open at the end of the year.
The biggest decrease was in 2009, when prime rents dropped to S$32.40 psf/month, a 10.2 per cent decrease from 2008.
Letty Lee, Director of Retail Services at CB Richard Ellis, said: “We are witnessing almost full occupancy at Orchard Road malls.
“New-to-market brands continue to actively explore taking up Orchard Road space, encouraged by fresh opportunities offered by newly available large prime space including the recent exit of Borders at Wheelock Properties. Rentals should hold steady for the fourth quarter.”
Source : Channel NewsAsia – 4 Oct 2011