Retail rents up but not much cheer for landlords

HAVE Singapore retail rents finally bottomed? That is a question some people have been asking after the Urban Redevelopment Authority recently released data showing a 2.9 per cent rise in the retail rental index for the Central Region in 2019 - reversing the 1 per cent fall in 2018.

Last year's retail rental gain was most pronounced in the prime Orchard Road shopping belt. The URA's median rental (based on lease commencement) for the Orchard Planning Area climbed 5.9 per cent last year, outperforming increases of 2.7 per cent for Central Area outside Orchard, and 0.9 per cent for Outside the Central Area (OCA).

Market watchers told BT that landlords of some prime Orchard Road malls achieved positive rental reversion for choice spaces - signing up new tenants for vacated space or renewing leases for existing tenants, at higher rental rates in 2019. However, demand for retail space in secondary locations and corridors remains lacklustre.