SINGAPORE (EDGEPROP) - As the retail sector bore the brunt of the “circuit breaker” measures, rents fell by 3.5% q-o-q in 2Q2020, marking its second consecutive quarter of decline.
With fewer footfalls to malls, retail occupancies also fell over the quarter by 1.6 percentage points to 90.4%, as many retailers closed down.
Correspondingly, net absorption for retail space in 2Q2020 decreased by 93,000 sqm, following a shrinkage of 43,000 sqm in the previous quarter. As a result, island-wide vacancy rate inched up to 9.6% in 2Q2020 from 8% in 1Q2020.
Looking ahead, retail occupancy levels are expected to continue to remain under pressure while rents are expected to decline by 10% to 15% for the whole of the year, says Knight Frank.
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