Prime retail rents improve in 1Q2022 amid consumer rebound
Dickson Koh assumes retailers will be much more favorable about their growth programs, which would provide even more support to a more powerful leasing interest. Decreased vacancy rates amid minimal new supply must likewise sustain a gradual recovery of retail rentals from 2H2022. However persistent inflationary pressures and also manpower lacks may mold development.
Looking ahead, Colliers expects an extra buoyant retail forecast as well as occupier sales on the back of increasing consumer step including the lifting of trip curbs and also reliable administration measures. “This augurs well for retail operators, particularly those nestled in the Downtown Core and Orchard,” states Koh.
Prime retail rents in rural and Orchard Road places edged up by 0.7% and also 0.4% respectively in 1Q2022, according to a report by Colliers. This is an upgrading from 4Q2021 which saw prime country leas up by 0.5% q-o-q while Orchard Road retail rents partially grown by 0.1% q-o-q.
“With footfall rebounding highly in the Orchard Road buying belt and the CBD, together with shopper traffic in the suburbs maintaining durable, this plainly suggests that the bricks-and-mortar shop is still relevant, also as online buying achieves traction,” claims Koh, associate director of study at Colliers Singapore.
