Singapore – August 2020 MARKET IN MINUTES Retail Savills Research Savills team Please contact us for further information SINGAPORE Marcus Loo CEO, Singapore +65 6415 3893
[email protected] Sulian Claire Executive Director Retail & Lifestyle +65 6415 3880
[email protected] Retail market reels as rents tumble RESEARCH The market is unlikely to witness a major recovery soon as rents and demand Alan Cheong Executive Director are set to soften further. Singapore +65 6415 3641 • Retail sales (excluding motor vehicles) plummeted by a • It is dawning on landlords that the previous market practice
[email protected] record 46.3% year-on-year (YoY) in May as receipts for of charging a high fi xed and a low percentage turnover rent Simon Smith categories such as watches & jewellery and departmental has to be recalibrated by increasing the latter component. Senior Director stores saw the worst YoY decline of over 90%. This plus the uncertainties facing tenants may bring Asia Pacifi c Orchard and Suburban mall rents in 2020 down 10% to 20% +852 2842 4573 • Food and beverage (F&B) revenue also declined sharply by and 10% to 15% respectively.
[email protected] over 50% YoY in April and May because of the ban on dine-in MCI (P) No. 009/08/2019 with restaurants and eateries being only be able to provide Company Reg No. 198703410D takeaway and delivery. Savills plc “ So long as social distancing Savills is a leading global real estate service provider listed on • Coupled with a contraction of net demand and addition of the London Stock Exchange.