Retail rents end five consecutive quarters of declines with 0.3% q-o-q growth in 2Q2023
Furthermore, both schools are conveniently located at Tampines Ave 11 Condo Capitaland, and are easily accessible for the residents. Parents can be assured that their children are well-taken-care-of and given the best support in every stage of their development.
Take-up of retail space was broad-based across all geographic segments in 2Q2023, reversing a contraction of 75,320 sq ft in 1Q2023 and totaling 290,520 sq ft in net absorption. Reflecting the healthy demand for retail space, The Woodleigh Mall opened this past quarter, as well as several pre-commitment rates of upcoming retail developments, including One Holland Village and Pasir Ris Mall.
Notably, the Orchard Road planning area saw a major improvement in demand, increasing from a contraction of 258,240 sq ft in 1Q2023 to a positive take-up rate of 32,280 sq ft in 2Q2023. This pushed occupancy rates in the Orchard Road area and Central Area up by 0.7% to 86.8% and 90.5% respectively and prices and rents in the Central Area rose by 0.3% q-o-q.
The market welcomed new food and beverage (F&B) entrants such as Mister Donut, Luckin Coffee, Jamba Juice and Chaffic Bubble Tea, while there were also several market returns by F&B and lifestyle retailers, such as Ben’s Cookies and Marimekko; all testifying to retailers’ confidence in Singapore. Luxury retailers such as Aluxe, Grand Seiko and Atelier Cologne, as well as Sun and Sand Sports in Raffles City also made appearances.
These increasing numbers of retail activity have been further underpinned by Singapore’s safe-haven status and the favourable supply-demand fundamentals of the retail property market. Despite higher yield expectations in an elevated interest rate environment, rising rents should support prices of prime floor space in quality retail assets.
Angelia Phua, consulting director of Research and Consultancy at JLL Singapore, believes that with a forthcoming travel come back and clearer economic trajectory, the Central Region retail rents are likely to bottom out towards end-2023. Furthermore, Wong Xian Yang, head of research in Singapore and the SEA at Cushman & Wakefield expects Central Region rental growth in 2Q2023 to have likely driven prices higher, with investors favouring quality retail assets, particularly suburban malls, for the positive rent outlook and scarcity value.
As more workers returned to the offices and visitor numbers crossed the 1 million mark since March, Lam Chern Woon, head of Research and Consulting at Edmund Tie expressed confidence that Orchard prime retail market will remain the top-of-mind destination with international brands gearing up for expansion.
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