Orchard Road rents move up a spot in global ranking

Orchard Road has moved up one place in the global ranking of rents because of the strong Singapore dollar.

It moved up a notch to 26th place in the Global Retail Survey 2011 carried out by Colliers International.

However, Orchard Road moved down a spot to seventh place in the Asia Pacific region in 2011 with the inclusion of Hong Kong’s Queen’s Road in the latest survey on rents in the world’s premier shopping districts.

Prime rents in Orchard Road had increased by 10.8 per cent year-on-year to US$366 per square foot per year in the first quarter of 2011, according to Colliers International Research.

However, in local currency terms, it remained unchanged at S$462 per square foot per year.

The hike in rent was due to the strengthening of the Singapore dollar against the US currency.

While the Orchard Road retail market is still adjusting to the influx of over 1.3 million square feet of new retail space in 2009, prime rents in Orchard Road are now more competitive than those in the premier retail corridors of Hong Kong, Sydney, Tokyo and Brisbane this year.

Nevertheless, Colliers International said that with the expected healthy tourism arrivals and positive consumer sentiment, there is a possibility for retailers in Orchard Road to record some profits for 2011.

Source : Channel NewsAsia – 13 Jun 2011