Prime retail rents improve in 1Q2022 amid consumer rebound
Prime retail rents in rural as well as Orchard Road sites moved up by 0.7% as well as 0.4% respectively in 1Q2022, according to an announcement by Colliers. This is an increase from 4Q2021 which saw prime rural rents up by 0.5% q-o-q while Orchard Road retail rents marginally grown by 0.1% q-o-q.
Dickson Koh anticipates sellers will certainly be much more bullish about their expansion programs, which would offer further service to a stronger leasing need. Decreased vacancy rates amid minimal new supply ought to additionally sustain a progressive rehabilitation of retail rentals from 2H2022. Yet persistent inflationary pressures and manpower lacks might temper improvement.
Looking in advance, Colliers projects a much more resilient retail outlook and lessee sales on the back of raising buyer footfall together with the lifting of traveling curbs as well as harmless administration actions. “This augurs well for retail providers, especially those situated in the Downtown Core and Orchard,” claims Koh.
“With footfall recovering tightly in the Orchard Road shopping belt and also the CBD, along with buyer traffic in the suburbs continuing to be resilient, this definitely indicates that the bricks-and-mortar business is still pertinent, also as online shopping achieves purchase,” mentions Koh, associate supervisor of study at Colliers Singapore.