Prime Orchard Road rental decline slowed in Q1: CB Richard Ellis

Property consultant CB Richard Ellis said the pace of prime Orchard Road rental decline slowed in the first quarter this year.

In a research report, it noted that prime Orchard Road rents averaged S$32.20 per square foot per month in the first quarter, down by just 0.7 per cent on-quarter.

Rents had declined between 1.5 per cent and 3.3 per cent in the previous four quarters.

Prime suburban rents, meanwhile, remained stable at S$28.10 per square foot per month in the first quarter, unchanged from the previous three months.

CBRE said F&B operations continue to flourish with more 24-hour grocers and cafes.

It added that the year ahead will be “interesting” for the retail space, with the imminent opening of the Circle Line and the completion of the two integrated resorts.

As for investment transactions, CBRE said the first quarter has been characterised by sales within the same group.

For example, over the period, it noted that Frasers Centrepoint Trust announced plans to buy two malls from Frasers Centrepoint Mall.

Source : Channel NewsAsia – 7 Apr 2010

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