M A R K E T B E AT Retail Q4 2019

Prime Rents (S$PSF/MO) QoQ 12-Mo. Tepid Economic Growth Chg Forecast Singapore economy remained sluggish, at 0.7% y-o-y in 3Q2019. For the whole of 2019, Singapore economy is expected to grow by around 0.7%, the lowest in a decade. Singapore’s slowing growth can be attributed to global economic uncertainties fueled by trade tensions between the US $35.77 and China, ambiguities regarding Brexit and a global slowdown in the electronics sector. Against this backdrop, retail sales fell as well, as Orchard consumers became more cautious on spending. Most retail categories registered a fall in sales YTD (1Q-3Q2019) , with the exception of Wearing $21.75 Apparel & Footwear and Medical Goods & Toiletries, which grew by 2.7% and 1.1% YTD respectively. Other City Areas Retailers Explore 5G Technology to Power New Customer Experiences With commercial 5G services expecting to roll out in Singapore by 2020 and at least half of the island to be covered by a 5G standalone network $31.76 by the end of 2022, some retailers have already begun to explore the potential of 5G technology. For example, hotpot restaurant Haidilao Suburban collaborated with telco M1 to set up a trial 5G network at its new outlet. The restaurant would offer virtual reality e-gaming and introduce smart features such as an intelligent kitchen management system and food delivery robots.

Downward Pressure on Retail Rents in 2020 ECONOMIC INDICATORS Prime rents across all markets rose in the last quarter of 2019. Orchard prime rents ($35.77 psf/mo) rose by 0.4%, while Other City Areas ($21.75 3Q 2019 psf/mo) and Suburban ($31.76 psf/mo) prime rents registered gains of 0.3% and 0.2% respectively. For the whole of 2019, Orchard rents registered the strongest growth, rising 2.6% y-o-y, while Other City Areas and Suburban prime rents rose 0.8% and 0.2% respectively. The YoY 12-Mo. positive rental growth in Orchard was driven by limited supply of new prime retail space amid rising tourist arrivals. Despite slower economic Chg Forecast 0.7% growth, prime spaces continue to enjoy very high or full occupancy rates, allowing landlords to hold rents or even raise rents. Real GDP Growth Nonetheless, the retail operating environment remains challenging and its outlook remains mixed. Landlords are still experimenting with concepts which work best. They are increasingly focused on tenants’ retail concepts rather than their ability to pay the highest rent. A few long-time brands are closing stores in 4Q2019, leading to additional supply entering the market in 2020. Though we expect the vacancies to be filled up quickly, 0.4% landlords would be hard-pressed to raise rents further, given the weaker economy and falling retail sales. Other City Areas rents could see a marginal decline (-0.5% y-o-y) in 2020, as it is not supported by a large residential catchment and does not attract steady tourist footfall like Inflation Growth . Orchard and Suburban rents are expected to see flattish growth in 2020. RETAIL PRIME RENTS RETAIL SUPPLY PIPELINE -1.3% Retail Sales Growth

Source: Ministry of Trade & Industry M A R K E T B E AT SINGAPORE Retail Q4 2019

MARKET STATISTICS OVERALL OVERALL PLANNED & INVENTORY YTD OVERALL NET YTD OVERALL NET PRIME EFFECTIVE SUBMARKET VACANT SPACE VACANCY UNDER QoQChange (%) (SF) ABSORPTION (SF) SUPPLY (SF) RENT (S$/SF/MO)* (SF) RATE CNSTR (SF) Orchard 7,427,160 441,324 5.9% 21,528 86,112 76,854 35.77 0.4 Other City Areas 17,674,488 1,463,904 8.3% 322,920 258,336 347,243 21.75 0.3 Suburban 41,645,916 3,110,796 7.5% 613,548 0 1,284,887 31.76 0.2 SINGAPORE TOTAL 66,747,564 5,016,024 7.5% 957,996 344,448 1,708,984 27.38 0.2

*Rental rates reflect average gross effective rates at prime spaces CHRISTINE LI SIGNIFICANT OPENINGS Q4 2019 Head of Research Singapore & Southeast Asia PROPERTY SUBMARKET TENANT SF TYPE +65 6232 0815 /[email protected] Marina Square Other City Areas Nerf Experience Singapore 18,000 New Other City Areas Pure Fitness 30,000 Expansion cushmanwakefield.com Kinex Shopping Mall Suburban Eccelente by HAO mart 19,000 Expansion Orchard Our Second Nature >2,000 Expansion Other City Areas Asus Experience Store 3,000 New

KEY CONSTRUCTION COMPLETIONS YTD 2019 PROPERTY SUBMARKET MAJOR TENANTS SF Jewel * Suburban Nike, Shake Shack, Shaw Theatres, Pokemon Center, Naiise 576,000 Funan Other City Areas Golden Village, Wildrice, Best Denki, FairPrice Finest 320,000 PLQ Mall Suburban Shaw Theatres, FairPrice Finest, KopiTime, Tokyu Hands 340,000 TripleOne Somerset (AEI) Orchard FairPrice, Imperial Treasure, Eishinkan Learning School 97,000

*Completed in 2018 but opened in 2019 A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION Cushman & Wakefield (NYSE: CWK) is a leading global SIGNIFICANT RETAIL PROJECTS – PLANNED & UNDER CONSTRUCTION real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is PROPERTY SUBMARKET SF* COMPLETION DATE among the largest real estate services firms with Tekka Place Other City Areas 70,000 2020 approximately 51,000 employees in 400 offices and 70 countries. In 2018, the firm had revenue of $8.2 billion Chevron House Other City Areas 51,400 2020 across core services of property, facilities and project The Woodleigh Mall Suburban 201,900 2022 management, leasing, capital markets, valuation and other services. Mixed-use Development at Punggol Suburban 140,000 2022 ©2019 Cushman & Wakefield. All rights reserved. The information *Estimated Net Leasable Area contained within this report is gathered from multiple sources believed to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.