COMMERCIAL PROPERTY, RETAIL | Staff Reporter, Singapore

Retail space prices dip 0.9% in September

The vacancy rate rose to 8.2%, but F&B firms continue to drive growth.

Singapore's retail space prices dipped by 0.9% in Q3, compared to the 3.2% decrease in Q2.

According to the Urban Redevelopment Authority (URA), rentals decreased by 0.2%, softer than the 1.2% decrease in Q2.

"The Singapore retail market has been fairly resilient in recent months," said Cushman & Wakefield Research director Christine Li.

As at the end of Q3, there was a total of 556,000 sqm gross floor area (GFA) of retail space from projects in the pipeline, lower by 3.5% from the Q2 amount.

The amount of occupied retail space increased by 15,000 sqm, compared with the decrease of 3,000 sqm in the previous quarter.

"F&B continues to be a major driver, seeing operators expand across the upmarket and mass market segments," Li said. "Singapore’s CBD has also seen a rejuvenation with more spaces being converted into F&B."

The stock of retail space increased by 22,000 sqm, higher than the increase of 18,000 sqm in Q2. As a result, the island-wide vacancy rate of retail space rose to 8.2%.

"Moving forward, the retail market will continue to be buoyed by demand for more F&B and potentially more temporary/'pop-up' set-ups as landlords look to curate a more interesting tenant mix and shopping environment," Li added.

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