Prices of retail space, rentals in Singapore down 1.9% in 1Q as vacancies creep up
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PRICES of retail space in Singapore continued to fall by 1.9 per cent in the first quarter of 2016, after declining 0.1 per cent in the previous quarter.
Rentals of retail space also fell by 1.9 per cent in Q1, after declining 1.3 per cent in the previous quarter.
The island-wide vacancy rate of retail space also creeped up to 7.3 per cent at the end of the quarter, from 7.2 per cent at the end of the previous quarter.
Within the quarter, the amount of occupied retail space increased by 11,000 square metre (nett), while the stock of retail space increased by 19,000 square metre (nett), which led to the rise in vacancy.
As at end-March 2016, there was a total supply of 783,000 square metres gross floor area of retail space from projects in the pipeline.
Questions & Answers
Q.What was the specific decline in retail space prices during the first quarter of 2016?
What was the specific decline in retail space prices during the first quarter of 2016?
Retail space prices in Singapore decreased by 1.9 per cent in the first quarter of 2016. This followed a 0.1 per cent decline in the quarter before, indicating a continued downward trend.
Q.How did the vacancy rate for retail space change at the end of the first quarter?
How did the vacancy rate for retail space change at the end of the first quarter?
The island-wide vacancy rate for retail space rose to 7.3 per cent by the end of Q1 2016. This was an increase from the 7.2 per cent recorded at the close of the previous quarter.
Q.Why did the vacancy rate increase despite more retail space being occupied?
Why did the vacancy rate increase despite more retail space being occupied?
The vacancy rate increased because the stock of retail space grew by 19,000 square metres during the quarter. This expansion was greater than the 11,000 square metres of newly occupied space.
Q.What is the total anticipated supply of new retail space from pipeline projects?
What is the total anticipated supply of new retail space from pipeline projects?
As of the end of March 2016, there was a total projected supply of 783,000 square metres of gross floor area. This retail space is expected from projects currently in the pipeline.
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