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Total strata-titled retail property transaction volume dropped 68 percent from 388 transactions in 2H 2013 to 124 transactions in H1 2014, or its lowest since 2009, according to Knight Frank.
It noted that sentiment in the strata-titled retail market has been adversely affected by the growing competition from online retailing, rising operating costs due to the tight labour supply conditions as well as the TDSR ruling.
The average price of new sale freehold retail properties marginally increased to $4,824 psf in H1 2014, with just 22 transactions compared to 104 transactions in H2 2013.
“Transactions of new freehold shops were mostly attributed by Macpherson Mall, Novena Regency (pictured), Prestige Point, and TRIO. The average transacted price of the most popular freehold project was Macpherson Mall at $4,951 per sq ft,” it said.
Over at the resale market, the top three projects in terms of sales volume were Bukit Timah Shopping Centre, Roxy Square and Katong Shopping Centre. Average resale price of freehold retail properties dropped from $3,209 psf in H2 2013 to $2,916 psf in H1 2014.
Meanwhile, the sales volume of new leasehold strata-titled retail properties plunged 81 percent, with average price dropping 30 percent.
“The Hillford at 60-year leasehold accounted for majority of new sale transactions in H1 2014, as compared to Junction Nine at 99-year leasehold as the main contributor in H1 2013.”
The resale leasehold market also softened in H1 2014, with transaction volume falling by 37.7 percent, albeit with marginal price increase of 1.6 percent to $2,361 psf.
Muneerah Bee, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email muneerah@propertyguru.com.sg
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