Retail property market becoming more competitive: DTZ

Retail property market becoming more competitive: DTZ

 

Property consultant DTZ Research says the retail sub-sector is becoming an increasingly competitive market.

 

Issuing a report today, DTZ said Singapore’s retail market was relatively stable in the second quarter this year due to positive consumer sentiments.

 

Turnover rents over that period had increased due to the Great Singapore Sale.

 

But there was limited growth for fixed gross rents as tenants are increasingly resisting committing to higher rents for both new retail space and lease renewals.

 

First-storey monthly fixed gross rents remained unchanged, averaging about 42 dollars per square foot in Orchard and around 27 dollars per square foot in other city areas.

 

Looking ahead, DTZ says the retail market should remain fairly stable despite increasing competition from the surge in forthcoming completions in the next few years.

 

About 5.4 million square feet of retail space will be completed by 2012 with three strategic malls in Orchard.

 

DTZ’s Retail Associate Director Anna Lee said the increase in future new supply will put a cap on price and rental increases.

 

She added that the new malls will offer opportunities for the retail market to re-invent itself with new concepts and offerings

  

Source: 938Live

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