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Prime retail space in the city-state could record a soft compound annual growth rate (CAGR) of 1.1 percent between 2018 and 2022, while those in its suburban areas could see a better rate of 1.5 percent, reported Singapore Business Review, citing a chart from DWS.
Deutsche Bank AG’s asset management division said near-term rental growth in Singapore, Kuala Lumpur and Hong Kong are expected to be lacklustre as these markets could be negatively affected by falling tourist spending and high occupancy costs.
Despite the soft forecasted rental growth, the city’s figures are slightly higher than Hong Kong’s forecasted CAGR of 1.0 percent from 2018 to 2022.
Meanwhile, Shanghai topped DWS’ list, with an expected prime retail CAGR growth of 2.3 percent, followed by Sydney with 2.2 percent.
Completing the top six are Guangzhou and Melbourne, which are tied with 2.1 percent, likewise for Seoul and Brisbane, whose prime retail rents are projected to rise at a CAGR rate of 1.9 percent.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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