Chart of the Day: Island-wide retail vacancy rate climbed to record high in Q2

Vacancy rate jumped to 7.2%.

Singapore's overall retail vacancy rate jumped to its highest level in at least four years in the second quarter, according to real estate statistics released by the Urban Redevelopment Authority.

Islandwide retail vacancy rate climbed to 7.2% in the second quarter, while the stock of retail space increased by 25,000 square metres.

Meanwhile, prices of retail space decreased by 0.5% in the quarter, while rentals decreased by 0.5%.

Analysts note that retail rents and prices will continue to come under pressure in coming quarters on back of the escalating supply glut.

“In the year ahead, rents of prime space particularly in Orchard Road and City Fringe areas are expected to come under pressure due to increasing labour costs and weakening demand from falling tourist arrival numbers. In view of the challenging retail environment, it would be even more imperative for the well-located and established malls to continuously enhance and refresh the shopping experience in order to stay abreast of the local and regional markets,” Cushman and Wakefield said.