Prime retail rents improve in 1Q2022 amid consumer rebound
Prime retail rents in country along with Orchard Road sites edged up by 0.7% as well as 0.4% specifically in 1Q2022, according to a record by Colliers. This is an enhancement from 4Q2021 which saw prime rural rentals up by 0.5% q-o-q while Orchard Road retail rentals somewhat raised by 0.1% q-o-q.
Looking in advance, Colliers expects an extra resilient retail prospect as well as renter sales on the back of enhancing buyer footfall together with the lifting of trip curbs and also safe supervision procedures. “This augurs well for retail operators, most especially those found in the Downtown Core and Orchard,” claims Dickson Koh.
“With footfall recuperating strongly in the Orchard Road shopping belt as well as the CBD, together with consumer traffic in the suburbs remaining resilient, this definitely signifies that the bricks-and-mortar market is still pertinent, even as on-line purchasing gains traction,” announces Koh, associate supervisor of research study at Colliers Singapore.
He foresees stores will be extra favorable regarding their development strategies, which would certainly add even more assistance to a better leasing need. Decreased vacancy prices amid minimal new supply ought to additionally sustain a gradual comeback of retail rentals from 2H2022. However consistent inflationary pressures and manpower shortages may solidify growth.