Prime retail rents improve in 1Q2022 amid consumer rebound
Prime retail leas in suburban including Orchard Road sites moved up by 0.7% and also 0.4% respectively in 1Q2022, according to a study by Colliers. This is an improvement from 4Q2021 which saw prime country rentals up by 0.5% q-o-q while Orchard Road retail rentals marginally improved by 0.1% q-o-q.
“With step rebounding firmly in the Orchard Road buying belt as well as the CBD, and also customer traffic in the country areas continuing to be tough, this definitely reveals that the bricks-and-mortar business is still relevant, even as on the internet buying achieves traction,” says Dickson Koh, associate supervisor of research study at Colliers Singapore.
He assumes sellers will be much more favorable about their expansion strategies, which would lend more help to a better leasing need. Lower vacancy fees in the middle of restricted new supply ought to also sustain a progressive comeback of retail leas from 2H2022. Yet persistent inflationary pressures and also workforce lacks might temper improvement.
Looking in the future, Colliers assumes a more buoyant retail forecast as well as lessee sales on the back of raising customers step together with the lifting of travel curbs as well as risk-free administration steps. “This augurs well for retail operators, especially those found in the Downtown Core and also Orchard,” says Koh.