Singapore- Retail
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SINGAPORE RETAIL March 2019 MARKETBEATS Prime S$34.91 S$21.64 S$31.69 Rents ($PSF/MO) Orchard Other City Areas Suburban ECONOMIC INDICATORS 12-Month 3Q 18 4Q 18 Forecast HIGHLIGHTS GDP Growth 2.4% 1.9% Retail Sales On a Rise Retail Sales 0.7% -0.4% Singapore retail sales ended on a positive note, with retail sales higher by 0.5% y-o-y CPI Growth 0.7% 0.5% for the whole of 2018. Firm economic growth and a tight labour market have driven Unemployment 2.1% 2.2% consumer confidence leading to higher spending. Growth was fueled by the medical Source: Ministry of Trade & Industry goods & toiletries (+5.0%), furniture & household equipment (+3.4%), watches & RETAIL PRIME RENTS jewellery (+2.0%) and wearing apparel & footwear (+2.0%) sectors. 50 45 ) 40 Orchard Demand for Mega Lifestyle Malls mo 35 30 Retailers are keen to take up space at large-sized malls which are able to offer a variety Suburban 25 of retailers and a differentiated consumer experience. This is evidenced by the strong 20 Other City Areas pre-commitment rates at Jewel Changi Airport. Most of Jewel’s retail space have been Rents (SGD/sf/ 15 leased, with many new-to-market brands such as Shake Shack, Pokemon Center RETAIL SUPPLY PIPELINE Singapore and Laderach. Opening in April 2019, the mega mall offers more than 280 1.5 shops and eateries and on-site attractions such as a 14,000 sqm Canopy Park. Orchard Suburban CBD Other City Areas A Cushman & Wakefield Research Publication 1.0 Two-Tier Market Trend Continues DATA The two-tier market continues to hold, with well-located and managed malls drawing the 0.5 INTO Supply (million sf) ACTION bulk of retail demand. Given a limited supply of prime retail spaces and the two-tier 0.0 retail market trend, prime rents in Orchard and other city areas have edged higher. 2019 2020 2021 2022 www.cushmanwakefield.com Orchard and other city areas rents rose 0.1% ($34.91 psf) and 0.3% ($21.64 psf) q-o-q Source: URA, Cushman & Wakefield Research respectively in 1Q2019. Suburban prime rents remain unchanged at $31.69 psf. SINGAPORE RETAIL MARKETBEATS March 2019 Christine Li EFFECTIVE RENT SUBMARKET Q-O-Q CHANGE 12-MONTH OUTLOOK Senior Director, Research, Singapore S$/SF/MO US$/SF/MO EUR/SF/MO 3 Church Street #09-03 Samsung Hub Prime Orchard S$34.91 US$25.86 €22.77 0.1% Singapore 049483 Other City Areas S$21.64 US$16.03 €13.93 0.3% Tel: +656232 0815 [email protected] Prime Suburban S$31.69 US$23.47 €20.67 0.0% US$/S$ = 1.350; €/S$ = 1.553 as of 20 March 2019 SIGNIFICANT OPENINGS IN 1Q2019 PROPERTY SUBMARKET TENANT SF LEASE TYPE City Square Other City Areas Don Don Donki 25,663 Expansion 230 Stadium Boulevard Other City Areas Decathlon 53,820 Expansion Ngee Ann City Orchard Onitsuka Tiger 1,776 Expansion Ion Orchard Orchard Musica Boutique 2,000 New Paragon Orchard Bose 1,400 New Alice@Mediapolis Suburban Deliveroo Food Market 40 Seater New DATA INTO ACTION SIGNIFICANT RETAIL PROJECTS – PLANNED & UNDER CONSTRUCTION PROPERTY SUBMARKET MAJOR TENANT SF COMPLETION DATE A Cushman & Wakefield Paya Lebar Quarter Mall Suburban - 340,000 2Q2019 Research Publication China Square Central CBD - 52,000 3Q2019 Funan Other City Areas - 320,000 3Q2019 Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers Chevron House CBD - 60,700 2020 and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 51,000 employees in 400 offices and 70 countries. In 2018, the firm had revenue of $8.2 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter. www.cushmanwakefield.com Copyright © 2019 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy..