Prime retail rents on Orchard Road drop 2.8% to S$38.17 psf in Q3
By Irene Chan, 938LIVE 21 October 2009
SINGAPORE: Prime retail rents on Orchard Road declined by 2.8 per cent to S$38.17 per square foot in the third quarter from the previous three months.
That is smaller than the 3.7 per cent fall in the second quarter and the 4.4 per cent drop in the first, according to a report by Colliers International.
Meanwhile, the average monthly retail rents in prime malls in the Tampines, Woodlands and Jurong areas posted an on-quarter increase of 1.3 per cent to S$32.75 per square foot per month, ending two straight quarters of decline.
Moving ahead, Colliers said while the worst may be over, the retail industry is not completely out of the woods yet.
The property consultancy said amidst mixed views on global and local economic prospects, there is also underlying caution.
With some four million square feet of retail space anticipated over the next three years, it expects landlords to remain flexible during rental negotiations and tenants to remain rental-sensitive.
However, it said consumer spending could strengthen over the next few months as the year-end festive and holiday season approaches.
Colliers expects prime retail rents on Orchard Road and the Regional Centres to continue to firm in the last quarter of this year.
Martin Koh/ Sherry Tang