Occupancy rate improves in Central Region as retail vacancy at 3-year low

Retail vacancy was the lowest since 2019, at 7.8% in the third quarter of 2022.

A return to normalcy led the vacancy rate for retail properties in the Central Region at a three-year low, posting 7.8% in the third quarter (Q3) of 2022, Savills Research revealed.

This signals an improved occupancy rate in the region, which improved on the back of an increase in appetite for taking up retail space such as the rest of central area and fringe area. 

Further, the take-up rate in Downtown Core Planning Area and Orchard Planning Area also picked up amidst a hike in the number of tourist arrivals. 

READ: Private home prices in OCR up 7.5%, the largest quarterly growth since Q3 2009

Whilst the retail vacancy in the Central Region fell 0.5 of a percentage point (ppt) quarter-on-quarter (QoQ) to 9.3%, that in the Outside Central Region remained at 5.1% in Q3 2022. 

“The latter’s performance could be due to the subdued take-up in the newly revamped Grantral Mall @ Macpherson (retail component of the former Citimac Industrial Complex),” read the report.

Savills monthly prime rents in Orchard and Suburban Areas went up by 1.0% QoQ to $21.30 per square foot (sq ft) and 0.7% QoQ to $23.20 psf, respectively.