Singapore’s retail rents remained resilient in Q2 2012, supported by a high employment rate and tourist arrivals.
According to property consultancy DTZ, the average rents of prime retail space in Orchard/Scotts Road rose marginally by 0.1 per cent quarter-on-quarter to S$30.33 per sq ft per month. Meanwhile, average rents in suburban areas increased 0.2 per cent to S$28.35 per sq ft per month.
However, DTZ said average retail rents in Singapore are expected to remain flat for the rest of the year. This is due to uncertainties in the eurozone which could curtail consumer spending as well as the tight labour market which could hamper retailers’ expansion plans.
Meanwhile, Singapore is also seeing supply-side pressure from the development pipeline such as The [email protected], orchardgateway, Westgate, Jem, Star Vista, which will be completed in 2012 and 2013.
Ms Chua Chor Hoon, Head of DTZ Asia Pacific Research, said, “While landlords are becoming more selective in offering space to control their tenant mix, retailers are at the same time getting more careful in committing to rental space as they desire prime frontage and good shopper traffic.
“This has resulted in temporary vacancies in some shopping centres, especially those in non-prime locations, as landlords were not able to find the right mix of tenants.”
Source : Channel NewsAsia – 18 Jun 2012