Singapore Q3 retail rental up 3.2pc

SINGAPORE, Nov 11 (Business Times): Singapore's average retail space rental rose by 3.2 per cent quarter-on-quarter in the third quarter of the year, according to the CBRE Asia Pacific Prime Rental Index released Thursday. The first rise recorded for almost three years, average prime retail rents stood at S$31.60 psfmonth last quarter. Fast fashion retailers accounted for the bulk of new entrants, including Aeropostale and H&M, which opened their first stores in Singapore during the period. According to CBRE, approximately 657,000 sqft of new retail space will be completed in 2012 most of which will be in the suburbs, with little new supply scheduled to be completed along Orchard Road. Overall the region saw a 2.4-per cent quarter-on-quarter growth in the third quarter. Comparatively, the second quarter saw a 1.6-per cent quarter-on-quarter growth. Greater China remained the key driver of regional rental growth, followed by Hong Kong and Singapore, while the rental growth slowed in the Pacific. Going forward, CBRE expects retail rents in Asia to continue to rise as domestic consumption remains firm and international retailers expand. However, the real estate firm notes that rental growth across the combined region will inevitably slow in forthcoming quarters as the deteriorating global economic outlook sees consumers begin to cut back on discretionary spending, which may result in selected retailers adopting a more cautious attitude towards expansion.