Singapore retail rent decline worsens
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The Singapore retail rent decline gathered pace in the last quarter according to data from Edmund Tie & Company.
In the second quarter, retail rents across the board fell by 3.9 per cent quarter-quarter. That was double the 1.9 per cent decline of the preceding quarter.
Amid weaker demand, occupancy levels also dipped, falling by 0.5 percentage points quarter-on-quarter to 92.2 per cent.
“In light of declining rents, several established retailers have taken – or are taking – advantage of the lower rents to reinforce their brand presence in Singapore through flagship stores,” the company’s quarterly review said.
These include:
- Choo Yilin at Mandarin Gallery.
- HP at Marina Square.
- Christian Dada at 268 Orchard.
- Victoria’s Secret at Mandarin Gallery.
- Uniqlo at Orchard Central.
- Michael Kors at Mandarin Gallery.
“As the sector undergoes bouts of restructuring, retailers are also constantly reinventing themselves to reach out to the rising number of technological-savvy consumers. This includes the recent launch of digital wallets (eg: Apple Pay, Samsung Pay, Android Pay) which a string of established retailers have adopted, including Starbucks, Uniqlo, NTUC FairPrice and Cold Storage.”
Headquartered in Singapore and supported by offices in Kuala Lumpur and Bangkok, Edmund Tie & Company is an established real-estate consulting firm that operates across Malaysia, Thailand and other countries in Southeast Asia.
Questions & Answers
Q.How much did Singapore's retail rents fall in the most recent quarter reported?
How much did Singapore's retail rents fall in the most recent quarter reported?
Retail rents across Singapore declined by 3.9 per cent quarter-on-quarter in the second quarter. This decline was double the rate seen in the preceding quarter, indicating a worsening trend in the market.
Q.What impact has the decline in retail rents had on occupancy levels in Singapore?
What impact has the decline in retail rents had on occupancy levels in Singapore?
Occupancy levels have also dipped amidst weaker demand. They fell by 0.5 percentage points quarter-on-quarter, reaching 92.2 per cent. This indicates that more retail spaces are becoming vacant.
Q.Which retailers are reportedly taking advantage of the lower rents to open new stores?
Which retailers are reportedly taking advantage of the lower rents to open new stores?
Several established retailers are reinforcing their brand presence through flagship stores due to lower rents. These include Choo Yilin, Victoria's Secret, and Michael Kors at Mandarin Gallery, HP at Marina Square, Christian Dada at 268 Orchard, and Uniqlo at Orchard Central.
Q.How are retailers trying to attract technologically savvy consumers?
How are retailers trying to attract technologically savvy consumers?
Retailers are reinventing themselves, including adopting digital wallets. Established retailers like Starbucks, Uniqlo, NTUC FairPrice, and Cold Storage have launched or accepted systems such as Apple Pay, Samsung Pay, and Android Pay.
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