Retail rents unchanged in first quarter

Estimates show rental values of retail space both in prime and suburban areas remained at as much as $39.70 per sq ft per month.

According to DTZ Research, "Gross retail rents at Orchard/Scotts Road held firm as the market absorbed the new supply that came onstream in 2009 and in Q1 2010. Gross rents of prime first-storey and upper-storey retail space in Orchard/Scotts Road remained at $39.70 per sq ft per month and at $20.50 per sq ft per month respectively Q1 2010."

Meanwhile in other city areas, after five consecutive quarters of decline, gross rents of prime first and upper-storey retail space held firm at $24.40 per sq ft per month and $14.00 per sq ft per month. In suburban areas monthly gross rents of prime first and upper-storey retail space remained unchanged as well in Q1 2010 at $33.50 per sq ft per month for first-storey space and $22.80 per sq ft per month for upper-storey space.

Ms Chua Chor Hoon, Head of DTZ South-east Asia Research said, "The retail industry was boosted with more tourist arrivals and rising consumer confidence in Q1 2010. As tourist arrivals are expected to grow and local consumption improves, demand for retail space is likely to increase. On the back of a brighter outlook for the retail industry, prime retail rents are expected to rise moderately."