Prime retail rents improve in 1Q2022 amid consumer rebound

Prime retail rents in country and Orchard Road areas moved up by 0.7% and also 0.4% respectively in 1Q2022, according to a report by Colliers. This is an upgrading from 4Q2021 which saw prime country leas up by 0.5% q-o-q while Orchard Road retail rentals somewhat enhanced by 0.1% q-o-q.

“With step bouncing back firmly in the Orchard Road buying belt and also the CBD, in addition to buyer traffic in the suburbs maintaining resilient, this obviously suggests that the bricks-and-mortar market is still relevant, even as on-line shopping achieves purchase,” announces Dickson Koh, associate director of research at Colliers Singapore.

He expects stores will be more favorable concerning their expansion strategies, which would lend additional help to a more powerful leasing interest. Lower vacancy prices in the amidst of restricted new supply ought to likewise assist a gradual comeback of retail leas from 2H2022. However relentless inflationary pressures and manpower scarcities might solidify advancement.

The Arden Qingjian Realty

Looking ahead, Colliers predicts a much more resilient retail forecast as well as lessee sales on the back of boosting customers footfall together with the lifting of trip curbs as well as harmless supervision actions. “This augurs well for retail providers, especially those situated in the Downtown Core and also Orchard,” claims Koh.

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