Some hope for malls but only fittest will thrive in tough climate

RETAIL landlords have been enduring tough times that were made worse by the Covid-19 pandemic. Data from the Urban Redevelopment Authority (URA) show that rental rates of retail space fell by 6.8 per cent year on year (yoy) in 2021, after falling 14.7 per cent in 2020. The island-wide vacancy of retail space was 8.1 per cent at end-2021.

Retail spending may be dampened by the impending rise in the goods and services tax and higher inflation, which will make consumers tighten their belts.

But the outlook for malls is not all gloomy as economic growth, rising income and reopening of the economy may lead to higher spending at malls.