Retail property supply predicted to jump 22% between 2013-2015

Most of stock will be in suburbs.

According to Nomura, island-wide retail property stock is expected by JLL to increase by 22% between 2013-2015F, with most of the 2013-2014F new supply in the suburban shopping area. 

Nomura notes that Jem (retail NLA 572,600 sq ft), which accounts for 27% of the total new supply of retail space in 2013F, opened in June with 100% of its retail
space committed and Westgate (retail NLA over 400,000 sq ft), which accounts for another 19% of this year’s new supply, has already achieved 50% pre-commitment ahead of its scheduled opening at the end of 2013F.

"While the new supply of retail space in 2013F may have been, say, overall 50% committed by end-1H13, another 2mn sq ft of new retail space scheduled for completion in 2014F suggests the retail rental outlook is likely to remain flat at best," Nomura said.