Retail rents in Singapore rise 2.3% as vacancy rate tightens to 7.5%: URA data
SINGAPORE – Rents of commercial retail space in the central area of Singapore went up by 2.3% in the third quarter, after dropping 1.5% in the earlier quarter, based on data released by the Urban Redevelopment Authority (URA) earlier on Oct 25 2019.The price index by URA on the retail space in the central region increased by 1.1% in Q3, against the 0.4% rise in Q2. Will this affect the retail shop sales at the One-North Eden?As at the finish of Q3, there was a supply totalling 288,000 square metres (sq m) of gross floor area (GFA) retail space from different projects in the pipeline, a decrease from 320,000 sq m GFA in the earlier quarter.The number of occupied retail space went up by 29,000 sq m (nett) in Q3, in comparison with the rise of 74,000 sq m (nett) in the previous quarter. With more retailers looking for space to expand their operations, the vacancy rate in Singapore reduced to 7.5% in Q3 2019 from the earlier quarter. Dairy Farm Residences is positioned to take advantage of the increased demand for retail outlets by integrating F&B and retail spaces within the development.In the meantime, the stock of retail space went up by 16,000 sq m (nett) in Q3, vis-a-vis a rise of 18,000 sq m (nett) in the earlier quarter.Because of this, Singapore’s vacancy rate of retail space tightened to 7.5% as at the finish of the third quarter from 7.7% as at the finish of the earlier quarter, a figure beneficial to mixed developments like Dairy Farm Residences.