Magazines Archives - 2012 August
Prime and suburb retail rents see marginal increase in Q2 2012, says DTZ
The average gross fixed rent in Orchard/Scotts roads rose 0.1% from the first quarter of this year.
Retail rents along Singapore's prime shopping street and suburban areas saw a slight quarter-on-quarter increase as employment and tourist arrivals remained high, a new report revealed.
According to property consultancy group, DTZ, the average gross fixed rent in Orchard/Scotts roads rose 0.1% from the first quarter of this year to S$30.33 (US$24.44) psf/month, as more international brands continued its foray into the city-state.
HObserved Anna Lee, DTZ's director for Retail: "In the Orchard/Scotts roads district, first-storey retail space with prime frontage remains limited with some of the prime first-storey space vacated by previous tenants such as in Wheelock Place and the Heeren being quickly taken up by other retailers.
"The prime retail belt also saw the entry of new international brands such as Tory Burch and Tommy Bahama, reflecting interest from international retailers as they shift focus to the Asia- Pacific, which is growing more strongly than the western economies."
Meanwhile, in suburban areas, rents grew 0.2% to S$28.35 psf/month, as international retailers such as H&M and Franc Franc set foot into the suburbs looking to tap on "the strong local spending power".
The group noted that with heightened economic uncertainties, retail rents are expected to stagnate through to the end of the year, as the anticipated global slowdown bears down on consumer spending while supply increases with new mall openings due to come on stream next year.
"While landlords are becoming more selective in offering space to control their tenant mix, retailers are getting more careful in committing to rental space as they desire prime frontage and good shopper traffic. This has resulted in temporary vacancies in some shopping centres, especially those in non-prime locations," Chua Chor Hoon, head of DTZ Asia Pacific Research, added.
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