Orchard monthly rents slip in 4Q11

Prime ground floor gross rents were steady around S$38.5 per sq ft per month for 2 years before slipping to SGD$38.30.

According to Colliers International, the drop in monthly rents was due to the latent effects of the influx of space completed in 2009/2010.

Over the period between 2Q and end of 2012, approximately 200,000 sq ft of new retail space will be delivered.

Looking ahead, retail rents are forecast to stay fairly resilient, with any downward corrections keeping within 3%.

"Given the immediate shopper catchment and the continued trend of retailers seeking a presence in well-positioned suburban malls in regional centers, rents there are projected to hold upbetter than those on Orchard Road,"