Prime retail rents in Orchard Road seen to dip 3% by end-2013

Demand for shop, F&B space to stay sluggish.

According to Colliers International, prime retail rents in Singapore’s premier Orchard Road shopping belt should end 2013 with an overall annual decrease of not more than 3.0% given that they have slipped by a moderate 2.3% in the first three quarters of the year. 

As for prime space in Regional Centres, with rents having increased by a slight 0.1% in the first nine months of 2013, they should end 2013 flat at levels close to the beginning of the year. 

In the strata-titled retail space market, investor demand for shop and F&B space, including mixed-use developments, is likely to stay dampened as a result of the impact of the TDSR.

Sales volume is expected to slow considerably as investors and potential owner-operators reassess their ability to obtain credit.