Prime retail rents improve in 1Q2022 amid consumer rebound
Looking ahead of time, Colliers expects a more resilient retail overview and also lessee sales on the back of enhancing customer footfall together with the lifting of travel curbs and also secure regulation actions. “This augurs well for retail providers, most especially those found in the Downtown Core and also Orchard,” claims Dickson Koh.
“With step recuperating firmly in the Orchard Road shopping belt as well as the CBD, in addition to buyer traffic in the country areas maintaining durable, this clearly shows that the bricks-and-mortar market is still relevant, also as online shopping obtains traction,” states Koh, associate supervisor of research at Colliers Singapore.
He assumes sellers will be extra bullish regarding their growth strategies, which would add more assistance to a more powerful leasing demand. Decreased vacancy fees amid minimal brand-new supply should also assist a progressive rehabilitation of retail leas from 2H2022. However relentless inflationary pressures and labor force lacks may temper development.
Prime retail leas in country and also Orchard Road places moved up by 0.7% as well as 0.4% respectively in 1Q2022, according to a statement by Colliers. This is an upgrading from 4Q2021 which saw prime suburban leas up by 0.5% q-o-q while Orchard Road retail rents partially increased by 0.1% q-o-q.