Retail rent prices increased 0.3% amidst a 26,000 sqm net lettable area decrease in the amount of retail occupancies.
Retail space rentals in Singapore slipped 1.2% in Q3 to 97 from 98.2 in the previous quarter, the Urban Redevelopment Authority’s (URA) rental index reported.
This follows a 1.1% QoQ decline in the previous quarter, URA noted.
Singapore also saw prices for retail spaces increase 0.3% in Q3 as the amount of occupied retail space decreased by 26,000 sqm net lettable area compared to the increase of 21,000 sqm measured in the previous quarter.
“As a result, the island-wide vacancy rate of retail space increased to 7.6% at the end of Q3 2018, from 7.3% at the end of the previous quarter,” URA said.
URA revealed a total supply of 501,000 sqm gross floor area (GFA) of retail space from projects in the pipeline in Q3 compared to the previous quarter’s 498,000 sqm GFA of retail space.
“The decline in retail rents in Q3 2018 reflect the challenges faced by retailers, as more consumers turn to online platforms to shop both locally and overseas. Rents of non-prime retail spaces also faced greater downward pressure over the same period. Moving forward, we maintain our forecast that rents for prime retail space may decline by up to 2% for the whole of 2018. Landlords will likely continue to introduce more collaborative lifestyle and experiential concepts in malls, to draw footfall.” said Wendy Low, executive director and head of retail, Knight Frank Singapore
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