More space, lower rents in Singapore
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More retail space is available in the city, with a slight dip in prices and a decrease in rental costs.
Singapore retail vacancy rates rose to 7.2 per cent at the end of the fourth quarter last year from 7 per cent at the end of the third quarter, according to the Singapore Urban Redevelopment Authority.
During the quarter, there was a 0.1 per cent dip in the prices of retail space, compared to a decrease of 0.3 per cent the previous quarter. Rental rates fell 1.3 per cent, following a 2 per cent drop in the third quarter.
For the year overall, prices for retail space were down 0.8 per cent while rentals fell by 4.1 per cent.
At the end of the fourth quarter, there were 808,000 sqm of retail space in projects in the pipeline.
Occupied retail space grew 8000 sqm in the fourth quarter of last year, compared to a drop of 13,000 sqm in the previous quarter. In the same period, the stock of retail space increased by 22,000 sqm compared to a 24,000 sqm decrease.
Questions & Answers
Q.What was the overall change in retail space prices and rental rates for the entire year?
What was the overall change in retail space prices and rental rates for the entire year?
Prices for retail space decreased by 0.8 per cent over the year. Rental rates saw a larger fall, dropping by 4.1 per cent during the same period, indicating a challenging year for landlords.
Q.How did the amount of occupied retail space change in the last quarter compared to the one before?
How did the amount of occupied retail space change in the last quarter compared to the one before?
Occupied retail space grew by 8,000 sqm in the fourth quarter of last year. This was a significant improvement compared to the previous quarter, which saw a drop of 13,000 sqm.
Q.What is the current amount of new retail space expected to become available in the future?
What is the current amount of new retail space expected to become available in the future?
There are currently 808,000 sqm of retail space in projects that are in the pipeline. This indicates a substantial amount of new supply is expected to enter the market.
Q.How did the stock of retail space change during the fourth quarter last year?
How did the stock of retail space change during the fourth quarter last year?
The stock of retail space increased by 22,000 sqm in the fourth quarter of last year. This contrasts sharply with the previous quarter, which experienced a decrease of 24,000 sqm in stock.
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