Retail Rents In Singapore Stabilising

Positive consumer sentiment and the Great Singapore Sale have provided some support for the retail property market in Singapore, according to property consultants DTZ.

It said given the general uncertain global outlook, tenants have resisted committing to higher rents, and this has kept the retail sector stable during the second quarter.

Going forward, analysts said they see at most a marginal increase of 2 to 3 per cent in rents for the rest of this year.

Cushman & Wakefield noted that there is little risk of oversupply as international retailers clamour for a piece of the Singapore market.

And although inflation may dampen domestic consumer spending, analysts said external demand from strong tourist arrivals is likely to offset that.

Mr Han said: "Into the next six months with the F1 arriving in September, we'll only see a higher number of tourists on shore, which will effectively see higher tourism receipts, (a) positive spillover in spite of high inflation numbers over the next six months or so."

With more malls fighting over the same tourism dollar, analysts said malls are starting to work harder to attract customers.

Analysts also said there is no fear that the Orchard belt will cannibalise suburban malls, as they serve different markets.

Source PropertyHighlightsSingapore via ChannelNewsAsia
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