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Rents of retail space in Singapore’s Orchard Road were ranked as the seventh most expensive in the Asia Pacific (APAC) region, according to Colliers International’s Global Retail Highlights.
According to the report, the iconic shopping belt’s retail rents stand at US$348 (S$451.56) per sq ft per year.
However, this figure is surpassed by rents at three locations in Hong Kong that took the top three spots in the rankings. Specifically, Queen’s Road boasts the highest retail rents in Asia Pacific at US$2,073 (S$2,690) psf per year, trailed by Canton Road with US$2,011 (S$2,610) and Causeway Bay at US$1,103 (S$1,431).
“As a gateway market to Southeast Asia, Singapore remains a desirable market for new brands and an attractive destination for international occupiers,” said Chia Siew Chuin, Director of Research & Advisory at Colliers International.
Colliers noted that many retailers have entered its market in the past year, including i.t., Etam, Liu.Jo, Cath Kidston and Adolfo Dominguez, while department store Robinsons relocated into a recently upgraded mall, The Heeren.
But despite the healthy demand for spaces by new stores and restaurants, its retail scene is currently facing headwinds due to rising costs, falling profits and tighter rules on foreign manpower. Consequently, rents were generally flat in 2013 and are likely to remain this way in the near future, she explained.
As for Orchard Road, the shopping belt continues to face stiffer competition from suburban malls and downtown shopping centres. As a result, gross rents of prime retail space in the area declined slightly to S$36.50 per sq ft in Q1 2014 compared to S$$36.75 per sq ft a year ago.
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this and other stories, email nikki@propertyguru.com.sg
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