Rising tourist arrivals boosted Orchard Road rents in H1

Its ground-floor rents could lead the gradual rental recovery from 2018 to 2022.

Ground-floor rents in the Orchard Road shopping belt led the rental recovery as the area is a mainstay for tourists, Colliers International reported.

Orchard Road ground-floor rents stayed flat YoY at $40.39 (USD29.59) psf pm during H1 2018, which is still higher compared to the regional centres’ rents which saw a marginal uptick of 0.3% YoY to $33.50 psf pm. Colliers International thinks that the H1 2018 rates marked some stabilisation in ground-floor rents.

“We expect ground-floor rents, particularly in Orchard Road to lead the gradual rental recovery over 2018 to 2022,” the firm noted.

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Meanwhile, two notable retail property transactions for the first half of 2018 are located in Orchard Road. These include the 50% stake of Capitol Piazza and Capitol Theatre sold for $349.5m and the strata, ground floor unit of Lucky Plaza sold for $9.4m or roughly $18,884 psf.