Singapore’s rental values for retail space have ended on a mixed note in Q2 2010, according to property consultancy firm DTZ Research.
A report released by DTZ showed that retail rents at Scotts and Orchard Road remained unchanged for the second consecutive quarter, as retailers’ performance were underpinned by new supply that came on-stream since 2009.
Gross rents for prime first-storey space in the Scotts and Orchard Road area remained at S$39.70 psf a month, while retail rents for upper-storey space remained at S$20.50 psf a month.
However, gross rents in other city districts have contracted, as over 815,000 sq. ft of retail space were completed in Q2 this year in areas outside Scotts and Orchard Road.
The new supply came mostly from The Shoppes at Marina Bay Sands.
Rents for prime first-storey space in other city districts dropped marginally by 0.4 percent in Q2, compared with S$24.30 psf per month in Q1.
Meanwhile, rents for upper-storey space dropped 0.7 percent on-quarter to S$13.90 psf per month. On the other hand, rents in suburban areas surged in Q2, with suburban malls outperforming the city malls.
The monthly gross rents of prime first-storey space in suburban malls grew marginally by 0.3 percent to S$33.60 psf a month, while rents of upper-storey space in this category increased 0.4 percent on-quarter to S$22.90 psf a month.