Rents along Orchard and Scotts Road on the rise

Rents along Orchard and Scotts Road edged higher in the fourth quarter after staying flat for four straight quarters.

According to real estate consultancy DTZ, the average gross rent of first-storey space in the Orchard/Scotts Road area increased by a marginal 0.3 per cent or 10 cents on-quarter to S$39.80 per square feet per month.

DTZ said there will be very little new supply coming on-stream in 2011 and 2012 along the premier shopping belt, giving rents a boost as demand starts to catch up with supply.

It added that the increase shows that retailers are optimistic of business prospects following the economic recovery, and the area continues to attract both existing retailers and new ones such as Swedish giant H&M.

Meanwhile, rents in other city areas fell for the third consecutive quarter due to supply pressure.

DTZ said the average rent in other city areas eased by 0.8 per cent in this quarter to S$23.90 per square feet per month.

It added that the drop follows the opening of The Shoppes at Marina Bay Sands, Marina Bay Link Mall, Esplanade Xchange and other additions at Raffles City.

Source : Channel NewsAsia – 20 Dec 2010

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