Prime retail rents improve in 1Q2022 amid consumer rebound
Prime retail leas in suburban including Orchard Road locations edged up by 0.7% as well as 0.4% respectively in 1Q2022, according to a record by Colliers. This is an improvement from 4Q2021 which saw prime suburban leas up by 0.5% q-o-q while Orchard Road retail leas somewhat doubled by 0.1% q-o-q.
Looking in advance, Colliers anticipates a more resilient retail outlook and also boarder sales on the back of enhancing buyer footfall and even the lifting of traveling curbs and also safe administration measures. “This augurs well for retail operators, particularly those found in the Downtown Core as well as Orchard,” claims Koh.
“With footfall bouncing back firmly in the Orchard Road purchasing belt as well as the CBD, along with customer traffic in the rural areas staying resilient, this definitely shows that the bricks-and-mortar company is still appropriate, also as on the internet shopping achieves traction,” expresses Dickson Koh, associate director of research at Colliers Singapore.
He anticipates sellers will be a lot more bullish regarding their development plans, which would give additional service to a stronger leasing interest. Lesser openings rates amid limited new supply must also maintain a progressive recovery of retail rents from 2H2022. But consistent inflationary pressures and also manpower lacks may temper development.