The Urban Redevelopment Authority is hopeful that the recent upswing in the rental index indicates a more positive outlook for the retail market. After 12 quarters of decline, consecutively, there has been a 0,1% increase. It may be a minor rise but in this volatile market, even the smallest nudge upwards is worth noting. If the trend continues for Potong Pasir rental rates, researchers feel confident in the knowledge that the previously unstable retail market has every chance of achieving stability. Obviously, this is good news for retailers across the board, who have been laboring under uncertainty for far too long.
Urban Redevelopment Authority Rental Rate Recovers
Across Singapore, there has been an increase in vacant retail space. Researchers confirm the rate to have grown from 0.1ppt q-o-q to 7.5%. It has been suggested that this shift is a result of market consolidation. While it may take landlords and retailers some time to adjust to this unfamiliar retail landscape, it’s fairly certain that this shift further contributes to the notion that the market will bottom out later this year. Potong Pasir Property rental rates are picking up as city fringe condominiums are in demand. It is noted that particularly for properties near to Potong Pasir MRT Station.
The sales decline has been prevalent for three years and as a result many retailers have been left disillusioned. However, in the last quarter of 2017, an increase in visitors from China and boost in the consumer climate has helped to grant a more positive perspective. Now, retail sales have shifted into positive territory and there is every chance that this trend will continue in the right direction.
Malls Show Signs of Retail Rental Recovery for Potong Pasir Properties
Orchard Road malls, in particular, stand to benefit from the upswing in tourism. The Singapore Tourism Board are combining efforts with the Urban Redevelopment Authority to revitalize the entire shopping belt. By drawing in more tourists, retailers in the area will reap the benefits. Improving the sales climate is not guaranteed to show a significant boost in profit margins – the number of competing stores is a little too high. However, elite retail rents could contribute to an overall market recovery of 1% to 3% by the end of the year.
Shopping malls in urban areas, are expected to continue showing an improved retail performance. Large retailers are more than happy to set up shop in these areas, pre-committing to rental agreements long before they move in. Of course, there are some retailers that can’t compete in the new arena but the general tone seems to be positive.
In Tampines Central, for example, Century Square is set to undergo massive $60 million asset improvement. The mall will probably open its doors later this year. Businesses who are committed to renting out retail space in the mall include well-known brands such as Hai Di Lao, The Food Market, Mahota Market, Gymmboxx, Totts, Learning Lab, and Filmgarde.
Changes in Rental Landscape Near to Potong Pasir
The changes in the retail landscape necessitate adaptation from both landlords and retailers alike. As an example, CapitaLand Mall Trust is partnering with e-commerce bigwig, Lazada, to find the perfect balance between an online and offline shopping experience. Their aim is to develop click-and-collect lounge areas in at least seven of the trust’s malls. Overall, this is an amalgamation of old and new that may prove to be incredibly beneficial.
Along the same vein, FJ Benjamin’s advisory board will assist in merging its physical locations and online sales channels. This omni-channel strategy will probably be adopted by several other retailers as they do their best to adapt to the changing marketplace.
Landlords are beginning to understand the importance of setting up co-working spaces in malls. This is not only from a profitability standpoint, but from a customer experience standpoint as well. By adding these sorts of workspaces to their malls, landlords are guaranteed to enjoy profits from leaseholders whilst retailers benefit from more affordable leases as a result of sharing the financial burden with their co-lessees.