Its ground-floor rents could lead the gradual rental recovery from 2018 to 2022.
Ground-floor rents in the Orchard Road shopping belt led the rental recovery as the area is a mainstay for tourists, Colliers International reported.
Orchard Road ground-floor rents stayed flat YoY at $40.39 (USD29.59) psf pm during H1 2018, which is still higher compared to the regional centres’ rents which saw a marginal uptick of 0.3% YoY to $33.50 psf pm. Colliers International thinks that the H1 2018 rates marked some stabilisation in ground-floor rents.
“We expect ground-floor rents, particularly in Orchard Road to lead the gradual rental recovery over 2018 to 2022,” the firm noted.
Meanwhile, two notable retail property transactions for the first half of 2018 are located in Orchard Road. These include the 50% stake of Capitol Piazza and Capitol Theatre sold for $349.5m and the strata, ground floor unit of Lucky Plaza sold for $9.4m or roughly $18,884 psf.
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