Suburban retail sees strongest growth in the second quarter: Edmund Tie

By Hailey Yu / EdgeProp Singapore | July 14, 2022 6:47 PM SGT
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SINGAPORE (EDGEPROP) - The retail market continued to grow across all submarkets in the second quarter, says Edmund Tie in a press release on July 13. The fringe/suburban submarket recorded the most significant rent growth, rising by 1.8% q-o-q while submarket rents for the Orchard/Scotts Road and other city areas increased by 1.2% and 0.5% respectively.
“Leasing demand in the fringe/suburban submarket has remained buoyant as Singapore continues to ease pandemic and border restrictions,” says Lam Chern Woon, senior director of research and consulting at Edmund Tie.
Departmental stores spending grew by 27.7% y-o-y while dining-out sales grew by 12.3% y-o-y from January to May compared to growth of 7.6% and 12.3% respectively for the full 2021.
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“This reflects the nation's penchant for dining and socialising, as F&B stores and shopping malls enjoy increased footfall and spending,” Lam explains.
In the second quarter, the Daiso flagship store at Jurong Point and Ben & Jerry’s at VivoCity were newly opened.
However, Lam cautions that consumer spending could stay dampened due to ongoing geopolitical uncertainties and rising inflationary pressures, and expects the majority of consumer spending to veer towards non-discretionary items.
Suburban retail rents are expected to grow by 8% this year, with other segments seeing growth between 3% to 5%, according to Lam.
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