Prime retail rents improve in 1Q2022 amid consumer rebound
Prime retail rentals in suburban and also Orchard Road areas edged up by 0.7% and 0.4% respectively in 1Q2022, according to a review by Colliers. This is an improvement from 4Q2021 which saw prime rural rents up by 0.5% q-o-q while Orchard Road retail rents marginally improved by 0.1% q-o-q.
“With step bouncing back strongly in the Orchard Road purchasing belt and the CBD, and also customer traffic in the rural areas staying tough, this plainly indicates that the bricks-and-mortar business is still relevant, also as on-line buying obtains purchase,” claims Dickson Koh, associate supervisor of research study at Colliers Singapore.
He presumes sellers will certainly be extra favorable concerning their expansion plans, which would certainly lend more assistance to a better leasing demand. Decreased vacancy rates amid minimal brand-new supply should also support a gradual rehabilitation of retail leas from 2H2022. However consistent inflationary pressures as well as workforce scarcities may temper growth.
Looking in the future, Colliers anticipates a more supple retail prospect and lessee sales on the back of increasing customers footfall and the lifting of travel curbs and safer management measures. “This augurs well for retail operators, mainly those nestled in the Downtown Core as well as Orchard,” says Koh.