Rentals for primary, secondary and suburban shopping areas in Singapore are expected to remain stable with some marginal upside over the next 12 months, according to the latest report from Jones Lang LaSalle.
It said vacancies of retail space are likely to stabilise as the market finds its equilibrium one year on, from the large addition of supply along Orchard Road.
The property consultant noted that Singapore’s retail sales index has been trending upward since the second quarter of last year, with retail sales showing an increase of 6 per cent year-on-year in July.
Demand was reinforced by rising visitor arrival numbers.
Overall, Jones Lang Lasalle said prime retail markets in Singapore, Bangkok, Kuala Lumpur and Jakarta have moved to the upturn phase of the rental cycle, and can expect some growth in both rental values and capital values over the next 12 months.
It said the stronger consumer confidence, as we move into the year-end festive season, will help to underpin demand for retail space across Southeast Asia.
Source : Channel NewsAsia – 29 Nov 2010