Care for a Coach, anyone?

Singapore is set to be home to more international luxury labels escaping crisis-struck Europe with 2 million sq ft of retail space in the pipeline.

According to a release by Savills Singapore, “More international retailers are expected to touchdown in Singapore. In Europe, retailers are bracing for a hard landing as the eurozone economy is projected to shrink and the unemployment rate now stands at 10.7%. In comparison, Asia is the centre of growth.”

Key findings from Savills indicates that the luxury goods segment dominated the retail scene, driven by robust income growth. New and upcoming luxury labels include Coach’s first principal-run store, Goyard, Pierre Balmain and Tory Burch.

Interest from international retailers remained strong although a strict due diligence on new entrants, coupled with tight supply of prime space, lengthened the leasing process. Approximately 2 million sq ft of suburban retail space is in the pipeline, mostly located in areas with high population growth. Based on Census of Population data 2000 and 2010, the highest resident population growth was recorded in Sengkang (+106,000), Jurong West (+64,000), Punggol (+59,000), Woodlands (+58,000) and Sembawang (+41,000).

Analysis of Urban Redevelopment Authority (URA) data shows that net take-up of suburban retail space averaged 248,000 sq ft annually in the past five years, exceeding annual net supply of 181,000 sq ft by 37%. Prime Orchard Road and suburban rents held firm at S$35.5 and S$30.8 psf pm in Q1 respectively.

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