Prime retail rents improve in 1Q2022 amid consumer rebound
By Timothy Tay
/ EdgeProp Singapore |
Colliers expects a more buoyant retail outlook and tenant sales on the back of increasing consumer footfall.
SINGAPORE (EDGEPROP) - Prime retail rents in suburban and Orchard Road locations edged up by 0.7% and 0.4% respectively in 1Q2022, according to a report by Colliers. This is an improvement from 4Q2021 which saw prime suburban rents up by 0.5% q-o-q while Orchard Road retail rents marginally increased by 0.1% q-o-q.
“With footfall recovering strongly in the Orchard Road shopping belt and the CBD, as well as shopper traffic in the suburban areas remaining resilient, this clearly indicates that the bricks-and-mortar shop is still relevant, even as online shopping gains traction,” says Dickson Koh, associate director of research at Colliers Singapore.
Looking ahead, Colliers expects a more buoyant retail outlook and tenant sales on the back of increasing consumer footfall and the lifting of travel curbs and safe management measures. “This augurs well for retail operators, especially those located in the Downtown Core and Orchard,” says Koh.
He expects retailers will be more bullish about their expansion plans, which would lend more support to a stronger leasing demand. Lower vacancy rates amid limited new supply should also support a gradual recovery of retail rents from 2H2022. But persistent inflationary pressures and manpower shortages may temper growth.
Retail rents in Singapore. (Credit: Colliers)
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