Retail sector growth slows: Savills
Property GuruProperty Guru – Tue, Dec 18, 2012
by Cheryl Tay
The Christmas season has brought little joy to retailers as they face lacklustre sales, according to the Q4 2012 Retail Briefing by Savills Research.
Excluding motor vehicles, retail sales posted a growth of 1.3 percent. However, year-on-year growth slowed to -0.6 percent (4.1 percent since April 2012). At the same time, sales of jewellery and watches — a measure of discretionary spending — fell for six straight months in October.
Retailers were also generally cautious in expanding their stores in H2 2012, with several looking to consolidate their operations. Nevertheless, existing retailers and new entrants who increased their presence were offered space with attractive rents and strategic locations.
Stores that expanded include famous brands such as Uniqlo, Toys"R"Us, Sephora, Lowrys Farm, Isetan and H&M. The latter opened its second store in ION Orchard, while Babies"R"Us and Toys"R"Us opened two adjacent stores in City Square Mall (pictured), with a combined area of 25,000 sq ft.
In addition, two malls — Chinatown Point and Plaza Singapura's new wing — opened in November. Formerly known as The Atrium@Orchard, the new wing increased Plaza Singapura's net leasable area to 629,000 sq ft from 498,150 sq ft.
Average prime rents on Orchard Road slid to S$35.1 psf pm in Q4 from S$35.2 in the previous quarter, while rents in prime suburban areas remained at S$31.1 psf pm.
"In the absence of extreme shocks, such as the 2009 supply onslaught of nearly 1.3 million sq ft on Orchard Road and negative GDP growth, we expect just a mild rental correction of up to three percent in the main shopping belt," said Alan Cheong, Director at Savills Research Singapore.Cheryl Tay, Editor of CommericalGuru, wrote this story. To contact her about this or other stories, email cheryltay@allproperty.com.sg
- wong chee tat :)
Showing posts with label Plaza Singapura. Show all posts
Showing posts with label Plaza Singapura. Show all posts
Monday, December 24, 2012
Rent in Orchard Rd prime areas down 0.28% in Q4
Rent in Orchard Rd prime areas down 0.28% in Q4
By Lip Kwok Wai, Alice Chia | Posted: 22 December 2012 2141 hrs
SINGAPORE: Prime area rent for shopping malls and retailers in Orchard Road inched down 0.28 per cent this quarter, compared to the previous quarter.
In a report by Savills World Research, average monthly rent in prime areas in Orchard Road were S$35.1 per square foot in the fourth quarter.
This is a slight drop from the S$35.2 per square foot in Q3.
Analysts felt that this is due to adjustments in the market, as rent in the area were growing too fast previously.
Alan Cheong, director of Savills Research said the fall could be due to over-expecting the level of tourism in Singapore.
He said: "While (tourism) did increase, apparently the spending power did not quite live up to its expectation. Rent and performance in the Orchard Road belt will be dependent on tourism trade and on the state of the economy."
More retail spaces will also be available soon.
Recently, Plaza Singapura completed its expansion works, providing 80 more shops.
A larger scale development, Orchard Gateway, will provide 180,000 square feet of retail space next year.
Analysts also say that a gloomy economic outlook ahead could also see rent fall by up to 3 per cent, and if economic growth slows, people will spend less.
Retailers may then take a hit, in turn exerting a downward pressure on rent.
- CNA/xq
- wong chee tat :)
By Lip Kwok Wai, Alice Chia | Posted: 22 December 2012 2141 hrs
SINGAPORE: Prime area rent for shopping malls and retailers in Orchard Road inched down 0.28 per cent this quarter, compared to the previous quarter.
In a report by Savills World Research, average monthly rent in prime areas in Orchard Road were S$35.1 per square foot in the fourth quarter.
This is a slight drop from the S$35.2 per square foot in Q3.
Analysts felt that this is due to adjustments in the market, as rent in the area were growing too fast previously.
Alan Cheong, director of Savills Research said the fall could be due to over-expecting the level of tourism in Singapore.
He said: "While (tourism) did increase, apparently the spending power did not quite live up to its expectation. Rent and performance in the Orchard Road belt will be dependent on tourism trade and on the state of the economy."
More retail spaces will also be available soon.
Recently, Plaza Singapura completed its expansion works, providing 80 more shops.
A larger scale development, Orchard Gateway, will provide 180,000 square feet of retail space next year.
Analysts also say that a gloomy economic outlook ahead could also see rent fall by up to 3 per cent, and if economic growth slows, people will spend less.
Retailers may then take a hit, in turn exerting a downward pressure on rent.
- CNA/xq
- wong chee tat :)
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