Prime retail rents improve in 1Q2022 amid consumer rebound
Prime retail rents in rural including Orchard Road areas moved up by 0.7% and 0.4% respectively in 1Q2022, according to a review by Colliers. This is an increase from 4Q2021 which saw prime suburban leas up by 0.5% q-o-q while Orchard Road retail rentals marginally raised by 0.1% q-o-q.
He predicts merchants will certainly be more bullish concerning their growth plans, which would certainly provide further assistance to a better leasing demand. Decreased vacancy fees in the middle of minimal brand-new supply ought to likewise support a steady recovery of retail leas from 2H2022. However persistent inflationary pressures and manpower scarcities may set progress.
Looking in the future, Colliers assumes an extra resilient retail prospect and dweller sales on the back of increasing consumer step and even the lifting of traveling curbs and secure supervision measures. “This augurs well for retail operators, specifically those located in the Downtown Core as well as Orchard,” states Koh.
“With footfall recovering tightly in the Orchard Road buying belt as well as the CBD, in addition to buyer traffic in the suburbs remaining resilient, this obviously reveals that the bricks-and-mortar market is still appropriate, even as online buying gains traction,” expresses Dickson Koh, associate director of research at Colliers Singapore.