Prime retail rents improve in 1Q2022 amid consumer rebound
Dickson Koh presumes sellers will be a lot more favorable concerning their development strategies, which would certainly bring additional support to a more powerful leasing need. Lesser openings prices amid limited new supply should also support a gradual rehabilitation of retail rents from 2H2022. Yet consistent inflationary pressures and also manpower scarcities may solidify progress.
Prime retail rents in rural and also Orchard Road places edged up by 0.7% and 0.4% specifically in 1Q2022, according to a review by Colliers. This is an upgrading from 4Q2021 which saw prime suburban rentals up by 0.5% q-o-q while Orchard Road retail rentals marginally increased by 0.1% q-o-q.
“With footfall recouping strongly in the Orchard Road buying belt and the CBD, and also customer traffic in the suburban areas staying tough, this clearly shows that the bricks-and-mortar business is still pertinent, also as on the internet shopping obtains purchase,” claims Koh, associate supervisor of study at Colliers Singapore.
Looking forward, Colliers predicts an extra supple retail outlook and dweller sales on the back of enhancing consumer footfall including the lifting of travel curbs and harmless regulation actions. “This augurs well for retail operators, specifically those located in the Downtown Core and Orchard,” claims Koh.