Chart of the Day: Retail vacancy in Orchard worsens to 7.6%

Slight improvement was seen in Downtown Core.

After recovering slightly by 0.9 ppts QoQ in 4Q16, the island-wide vacancy rate in 1Q17 went up 0.2 ppts QoQ to 7.7%.

According to Savills, the vacancy level in Suburban Area inched up 0.2 ppts QoQ to 7.3%, reaching its highest level since the new Urban Redevelopment Authority’s (URA) time series was constituted in 2011.

Following a rebound in the previous quarter, the vacancy rate in Orchard Planning Area and rest of Central Area worsened by 0.8 ppts QoQ to 7.6% and 7.7% respectively in 1Q17.

Meanwhile, slight improvements in occupancy levels of the Downtown Core Planning Area and Fringe Area were not due to healthy demand but rather to the fall of 280,000 sq ft in retail space supply, which was greater than the net retail demand. Apart from the Suburban Area where demand was supported by the take-up in the new Hillion Mall, net demand for retail space fell across the board in all other areas of the Central Region. As such, island-wide net retail demand decreased by 441,000 sq ft.