Chart of the Day: Orchard Road is losing its edge over suburban malls

Rents fell to a record low last quarter.

As flagging tourist numbers continue to hamper retail sales, prime malls in Orchard Road are increasingly losing lustre when compared to their more resilient suburban counterparts.

According to Savills, prime retail rents in Orchard Road hit a record low after posting another 1% quarter-on-quarter decline.

Prime rents now stand at $31.9 per sq ft per month, dangerously close to the monthly rent of $31.1 psf for suburban malls.

Suburban rents remained resilient because retailers are aiming to expand to the heartlands, Savills said.

"Across the industry, retailers are generally downsizing their spaces in a bid to minimise operating costs.
There is also a shift in retailers’ interest from the Orchard shopping belt to the suburban malls," Savills said.