Bookmark & Share
Leasing activity of prime retail spaces in the Asia Pacific (APAC) region declined further in Q1 2015, as occupiers turned more cautious, according to a CBRE report.
Singapore was one of the weaker markets as retailers were affected by lacklustre sales and ongoing manpower shortages. In fact, the country saw many closures during the period, with more secondary space being vacated. In South Korea, the industry is suffering the ill effects of the Middle East Respiratory Syndrome (MERS) outbreak. “This is affecting retailers as people are avoiding public areas with large crowds, particularly shopping malls and restaurants,” said Henry Chin, CBRE’s Research Head for Asia Pacific.
In Hong Kong, demand for prime retail space softened due to shifting tourist consumption patterns, and the expected drop in tourist arrivals from Mainland China, as a new rule now permits Shenzhen residents to make only one trip per week into the special autonomous region (SAR).
Despite the sluggish leasing activity in Asia Pacific, prime retail rents in some markets have risen, such as in Ho Chi Minh City, Tokyo, Manila, Sydney, Wellington, and Melbourne. The Australian markets recorded greater leasing demand from high-end brands, noted CBRE, while redevelopment and renovation activities in Sydney and Melbourne are expected to support further rental growth and provide more spaces in which retailers can expand.
In Manila and Jakarta, the retail space rental markets are benefiting from healthy leasing and the expansionary appetite of global retailers who intend to venture into those economies.
Cheryl Marie Tay, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email cheryl@propertyguru.com.sg
Related Articles:
MAS announces refined proposals to strengthen REIT market