Retail rents continue to slump as massive space supply comes onstream

Rents dropped by 1.9% in Q1.

Retail rents in Singapore softened further in the first quarter, while the islandwide retail vacancy rate inched up as a steep surge in space supply entered the market.

Statistics from the Urban Redevelopment Authority (URA) showed that retail rents decreased by 1.9% in the first quarter, a steeper pace of contraction compared to the drop of 1.3% in the previous quarter.

Prices of retail space also dropped by 1.9%. The stock of retail space increased by 19,000 sq m in the first quarter, compared to the increase of 22,000 sq m in the previous quarter.

As a result, the island-wide vacancy rate of retail space rose to 7.3% at the end of of the first quarter, from 7.2% at the end of the previous quarter.