Ka-ching! Tourist retail up 35.7% to an incredible $4.98b

But continued appreciation of Sing dollar may impact inbound tourist numbers as well as spending.

According to Pacific Star Group, stronger retailer demand in the prime retail market, supported by an improving tourism and domestic spending, should set an upward momentum for rents.

Pacific Star Group released its property market snapshots for Singapore:

Major themes

Singapore experienced a strong start to the year with the 1Q11 GDP registering a growth of 8.3% y-o-y. Growth was driven by a surge in pharmaceutical output growth and a steady push from the service sector
Inflation peaked in March 2011 at 5.0% y-o-y but is set to ease going forward. However, it is still expected to remain above the historical norm of 2%
The MAS is expected to maintain its policy of gradual appreciation of the Sing dollar in view of the inflationary pressure.

Opportunities

Demand continues to be driven by strong economic growth and business sentiment. Given the trend of relocation, opportunities will arise in older offices that are in good location with enhancement/ repositioning potential.
Strong tourist arrivals in 2011 have boosted retail, tourism and other related services segment. Tourism receipt was S$4.98 billion, a 35.7% y-o-y growth.

Catalysts

A relaxation of immigration policy could help spur housing demand and retail spending.
Higher than expected absorption for the significant pipeline of prime office space that is scheduled to be completed between 2011-2012 could provide further upside for the sector.
Stronger retailer demand in the prime retail market, supported by an improving tourism and domestic spending, should set an upward momentum for rents.

Challenges

The continued appreciation of Sing dollar in the coming quarters may impact inbound tourist numbers as well as spending.
Government continues to address housing affordability with various measures targeting at both demand and supply.

Photo credit: mroach

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.

The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.

So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia