Singapore retail rent decline ‘moderated’
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Fresh research from real estate house Edmund Tie & Company suggests the decline in Singapore retail rents has moderated.
Dr Lee Nai Jia, head of research with Edmund Tie, says the retail leasing market remained subdued in the third quarter, despite the decline easing.
“While e-commerce and the accessibility to shopping havens in neighbouring countries continue to affect retailers and the overall retail market, the impact seems contained for now,” he said in a research note.
“In fact, we see more online shopping portals adopting the brick and mortar strategy, such as Reebonz.
“Separately, local retailers are engaging consumers via omni-channels.”
In the short term, Jia predicts food and beverage operators and educational institutions will most likely form the bulk of demand for retail space.
Questions & Answers
Q.What is currently affecting the Singapore retail market?
What is currently affecting the Singapore retail market?
E-commerce and the ease of access to shopping destinations in nearby countries are impacting retailers and the overall retail market. However, this effect appears to be under control at present.
Q.What new strategies are some online shopping businesses adopting?
What new strategies are some online shopping businesses adopting?
Some online shopping portals are now implementing a brick and mortar strategy, as exemplified by Reebonz. Also, local retailers are focusing on engaging consumers through various omni-channel approaches.
Q.Which sectors are expected to drive demand for retail space in the near future?
Which sectors are expected to drive demand for retail space in the near future?
In the short term, food and beverage operators along with educational institutions are anticipated to make up the majority of the demand for available retail space.
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