Rental for prime Orchard Road locations remained stable in July and September

Rental for prime Orchard Road locations remained stable at about S$31.10 per square foot in July and September after contracting for the last seven quarters.

Property consultancy CB Richard Ellis (CBRE) said rent in suburban malls however continued to strengthen.

It said this is because of a strong catchment demand.

Prime Suburban rents rose to S$29 per square foot, per month between July and September this year.

This is a slight increase from the S$28.50 per square foot, a quarter ago.

CBRE said retail rents went down overall in the third quarter, except for rents in prime Orchard Road and suburban malls.

It also pointed out that the difference in rentals between prime suburban and prime Orchard space continued to narrow.

In the first three months of the year, the gap decreased further by 12.6 per cent, going down to 8.2 per cent in the second quarter.

And in this third quarter, it was just a 6.6 per cent difference.

CBRE added that 4.12 million square feet of retail space is likely to be completed over the next five years.

Of which, just under 2 million square feet will be completed in the next 15 months.

These include Phase One of Marina Bay Link Mall at Marina Bay and Clementi Mall.

CBRE said retailers and landlords are now gearing up for the Formula One race from September 24 to 26 and the year-end festivities.

It added that retailers are generally more optimistic about operating conditions for the remainder of the year.

This is because of increased spendings at the Great Singapore Sale and contributions from higher tourist arrivals.

Source : Channel NewsAsia – 21 Sep 2010

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