Retail space prices dipped 0.1% in Q1

Pipeline supply for retail space rose 4.1% to 509,000 sqm.

The prices of retail space slightly rose by 0.1% in the first quarter 2018, significantly softer than the 1% increase in the previous quarter, the Urban Redevelopment Authority (URA) revealed. The rentals of retail space rose by the same rate at 0.1%, which improved from the 0.5% decrease last quarter.

There was a total supply of 530,000 sqm gross avenue (GFA) of retail space from projects in the pipeline, 4.1% higher than the 509,000 sqm GFA of retail space in the pipeline last quarter.

The amount of occupied retail space remained unchanged compared with the increase of 64,000 sq m (nett) in the previous quarter. Meanwhile, the stock of retail space increased by 11,000 sqm (nett) compared with the increase of 18,000 sqm (nett) last quarter.

As a result, the island-wide vacancy rate of retail space jumped 0.01 ppt from 7.4% in Q4 to 7.5% at the end of Q1.

Photo from VasenkaPhotography CC BY 2.0