Retail rentals down 1.5% in Q2: URA

However, the prices of retail spaces increased by 0.4%.

Retail rentals continued to fall by 1.5% in Q2 to extend the 0.2% decline in the previous quarter, URA data revealed. On the other hand, retail prices reversed the 1.9% decline in Q1 to rise 0.4% in Q2.

Also read: Retail rent growth needs more push for recovery: UBS

Meanwhile, the island-wide vacancy rate of retail space decreased to 7.7% at the end of Q2, from 8.7% at the end of the previous quarter

Total supply of retail space in the pipeline fell to 320,000 sqm gross floor area (GFA) in Q2 from 364,000 sq m GFA of retail space in the pipeline in the previous quarter. In total, 92,901 sq m of retail space was completed in the first half of the year.

Also read: 1.5 million sf of retail property supply to come online by 2022

On the other hand, the amount of occupied retail space increased to 74,000 sq m (nett) in Q2, compared to a decrease of 14,000 sq m (nett) in the previous quarter; whilst the stock of retail

Catherine He, associate director of research at CBRE, attributed the decline to the poorer performance of secondary floors and buildings as they have been the hardest hit by the slowing retail market. However, she noted that landlords may be relenting on rents in favour of higher occupancy in light of falling island-wide vacancy rates.