Overall recovery expected to be slow; resilient retailers could leverage on rental rebates and boost online strategies to drive sales
Retail rents declined 4.7% on average for Orchard Road and Regional Centre in H1 2020 amid the effects of the nation-wide Circuit Breaker measures. While most retail shops have reopened, we expect rents to fall 5% - 8% in 2020.
Net demand in H1 2020 fell to a record low and we expect new demand to stay muted, despite limited new supply. Island-wide vacancy jumped to 9.6% at a record 1.46 million sq ft amid retail closures and downsizing of operations, but is expected to improve from 2021 and trend towards 7% in 2024.
Download Colliers' bi-annual report on the retail sector in Singapore for H1 2020, as we analyse the latest trends and market outlook, with expert recommendations for retailers, landlords and investors.