Orchard-area retail rents seen softening

THE average monthly gross rents for prime ground-floor retail space in Orchard Road will either stay flat or dip by one per cent for the rest of this year, following a mildly softer Q3 showing, according to a Colliers International report released on Wednesday.

This is because malls there are highly dependent on the tourist dollar and the weak visitor arrivals since March is likely to exert some pressure on malls in Orchard Road, said Chia Siew Chuin, the director of research and advisory at Colliers International.

Already, rents of prime retail space here have been kept in check this quarter - despite healthy leasing activities - as a result of weakness in tourist arrivals and weaker retail sales. The average monthly gross rents of prime retail space in Orchard Road softened by 0.5 per cent to S$36.25 per sq ft from the previous quarter.