Retail to see improved footfall and tenant sales in H2 2022: analyst
In Q1, prime rents in commercial areas edged up by at least 0.4% QoQ.
The retail sector is expected to stand on firmer ground in the second half of the year, following improved activity in the first half, professional services and investment management firm Colliers said.
In Q1 2022, prime rents in both Suburban and Orchard locations edged up by 0.7% and 0.4% QOQ respectively, which Collier said reflects an "improving consumer and business confidence."
In the coming quarters, Colliers said "consumer footfall and tenant sales are likely to increase" amidst the lifting of travel curbs and safe management measures and resumption of live performances and the reopening of nightlife businesses.
The tightening of vacancy rates amid limited new supply is also expected to back the gradual recovery of retail rents from H2 2022 onwards, Colliers added.
The analyst, however, said that pace of improvement would like to be tempered by "persistent inflationary pressures and manpower shortages."
Apart from shopper traffic and tenant sales, Colliers said prime retail capital values are also poised to grow going forward on the back of "renewed investment interest in these assets."
In Q1, the average capital values of prime retail assets increased by 0.1% QoQ.