Orchard Road rents expected to dip slightly this year: Savills

Prime Orchard Road rents are expected to dip slightly this year as some restaurants look for cheaper space on the fringes of the city-centre, Savills said in a report on Friday.

Rising manpower costs in a tight Singapore labour market are also discouraging retailers from expanding, contributing to the downward pressure on rents, the UK property services firm said.

Savills said it expects rents at prime Orchard Road malls to fall by around 2 per cent this year from current levels of around S$34.6 per square foot per month.

But retail rents outside the central area could edge higher by around 1.5 per cent from around S$31.1 per square foot, as consumer sentiment remains strong, because businesses operating in the prime suburban malls tend to be more profitable.

Source : Channel NewsAsia – 28 Feb 2014

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