Prime rents at Orchard Road fell for the first time since Q2 2015

Island-wide, prime rents dip 2.2% in 3Q.

Against the softer global and local economic conditions and persistently weak retail spending, competition for the spending dollar has intensified.

As retailers continue to consolidate outlets in order to streamline costs, demand for space has continued to soften and weighed down on retail rents in Q3 2016, said Knight Frank (KF).

According to KF, the average island-wide prime retail rents moderated in Q3 2016. The average gross rents for prime spaces was $31.20, which represents 2.2% decline YoY and 0.2% dip on a quarterly basis.

Average Orchard Road prime rents fell for the first time since Q2 2015 on the back of the tougher retail climate. It declined by 0.1% YoY and 0.5% QoQ.

Suburban prime rents improved marginally by 0.1% QoQ, largely supported by the stable demand from the surrounding residential catchment. It fell 4.2%, however, on an annual basis.

Prime rents within Marina Centre, City Hall, Bugis, and City Fringe areas held steady compared to the previous quarter.