The COVID-19 shakeup is only the latest in a series of challenges faced by Singapore’s retail property sector. Money Mind looks at what it will take to attract shoppers back to the malls.
The 28-year-old buys everything online – from everyday consumer goods to big ticket items including S$40,000 worth of renovation items.
According to data from the Urban Redevelopment Authority , retail property prices have been on a general downtrend since the first quarter of 2016.This lower footfall is pressuring rentals. Retail rents started falling at the beginning of 2020 and have been declining for seven straight quarters, according to URA data.
“What will support rents further is a limited supply of new retail space," said Mr Wong, who is Cushman & Wakefield’s head of research in Singapore. URA data showed that median rentals for this region have decreased around 12 per cent since the fourth quarter of 2019, compared to a 16 per cent decline for malls in the Orchard area, and a 14 per cent decline for CBD malls.