Prime retail rents ‘stabilising’ after 2-year decline: Savills
Prime retail rents in Orchard Area rose by 0.4% in the first quarter of 2022.
Real estate analyst, Savills, said prime retail rents are showing signs of stabilising after reporting a two-year decline, adding that strict border rules and social distancing measures could have dampened overall rental growth.
Savills said in its latest report that monthly prime rents in the Orchard Area went up by 0.4%, on a quarterly basis, to $21 per square foot (psf) whilst in Suburban Areas, it rose by 0.5% quarter-on-quarter (QoQ) to $22.90 psf.
But, as this happened, Savills noted that most COVID-19 safe management measures are still existing in the first quarter of 2022, prompting retailers to remain cautious amidst uncertainty over the pace of recovery.
“Footfall and sales in the Central Business District have yet to return to normal levels as most offices were still either operating remotely in whole or adopting hybrid arrangements, resulting in a decline in catchment densities for retail space in the Downtown Core Planning Area,” Savills further pointed out.
It also said the slow return of human traffic may have led to vacancy of retail spaces such as The Assembly at Raffles City.
Data from the Urban Redevelopment Authority, its retail rental index for the Central Region declined by 0.4% QoQ after registering a short-lived recovery in the previous quarter.