Retail slump continues in Q3 as rents ease 0.2%, prices slip 0.9%

Rentals of retail space continued their decline, falling by 0.2 per cent in the third quarter of 2017, compared with the decrease of 1.2 per cent in the previous quarter.

The amount of occupied retail space increased by 15,000 square metres (nett) in Q3, compared with the decrease of 3,000 sq m (nett) in the previous quarter.

However, the stock of retail space also increased by 22,000 sq m (nett) in Q3, compared with the increase of 18,000 sq m (nett) in the previous quarter.

As a result, the island-wide vacancy rate of retail space rose to 8.2 per cent at the end of Q3 2017, from 8.1 per cent at the end of the previous quarter.

On the transactions front, prices of retail space decreased by 0.9 per cent in Q3, compared with the decrease of 3.2 per cent in the previous quarter.

As at the end of Q3, there was a total supply of 556,000 square metres (sq m) gross floor area of retail space from projects in the pipeline, compared with the 576,000 sqm of retail space in the pipeline in the previous quarter.