Prime retail rents improve in 1Q2022 amid consumer rebound
Prime retail rentals in suburban and Orchard Road locations edged up by 0.7% and 0.4% specifically in 1Q2022, according to a study by Colliers. This is an increase from 4Q2021 which saw prime suburban rentals up by 0.5% q-o-q while Orchard Road retail rents somewhat doubled by 0.1% q-o-q.
“With step recovering highly in the Orchard Road purchasing belt as well as the CBD, together with buyer traffic in the suburbs staying resistant, this plainly indicates that the bricks-and-mortar business is still relevant, even as online shopping achieves traction,” announces Dickson Koh, associate supervisor of research at Colliers Singapore.
He assumes merchants will certainly be extra bullish about their development strategies, which would certainly present more assistance to a stronger leasing demand. Lower vacancy rates amid restricted brand-new supply ought to likewise sustain a gradual comeback of retail rents from 2H2022. However persistent inflationary pressures and workers shortages may toughen up development.
Looking in the future, Colliers projects a more buoyant retail overview and occupier sales on the back of enhancing consumer step and the lifting of travel curbs and safe regulation actions. “This augurs well for retail providers, most especially those located in the Downtown Core as well as Orchard,” says Koh.