AVERAGE prime retail rents on Orchard Road fell for the sixth consecutive quarter in the second quarter of this year, CBRE Research said on Thursday.
Prime Orchard Road rents stood at S$32.50 per square foot per month (psf/month), on average, in the second quarter, down 1.1 per cent from the first quarter of 2016.
The prime suburban retail rents fell less sharply, with the average prime rent in that segment weakening by 0.7 per cent to S$29.45 psf/month from the first quarter of 2016. Prime suburban rents only began to fall in the last quarter of 2015, CBRE noted.
“The retail sector is still undergoing restructuring and is currently an occupiers’ market,” said Desmond Sim, head of research, Singapore & South East Asia, CBRE, in a media statement.
Still, given intense competition within the market, location, visibility, and high footfall have become even more important factors for brands, with firms holding off expansion and market entry, as prime space in good locations is scarce.
“With no foreseeable new supply in Orchard Road and Marina Centre in the next few years at least until 2019, this should provide some support for prime rents in Orchard Road for the next half of the year,” CBRE said.