Tag Archives: Singapore Retail Market

Retail sales down 5.2% on year in Aug, led by motor vehicles and petrol prices

Posted on 15 Oct 2009 | Comments Off on Retail sales down 5.2% on year in Aug, led by motor vehicles and petrol prices

Singapore’s retail sales fell by 5.2 per cent in August compared to the same period last year.

Compared to August 2008, turnover of motor vehicles dropped by 11.6 per cent and sales at petrol service stations dropped by almost 14 per cent, due partially to lower petrol prices.

After adjusting for price changes, the volume of petrol sales declined by seven per cent over a year ago.

However, on a month-on-month basis, retail sales rose by 5.2 per cent in August compared to July, mainly due to a 13 per cent jump in the sale of motor vehicles.

Sales of telecommunications apparatus, computers, watches and jewellery declined between 10 and 14.7 per cent in August compared to the year before.

Sales of optical goods, books and food and beverages also fell, by about six per cent on year. Continue reading →

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Retail market looking good

Posted on 24 Sep 2009 | Comments Off on Retail market looking good

Some 1.1m sq ft of retail space will be added to Orchard Rd this year, bumping up supply in the prime shopping belt by 24%

THE retail scene appears to be regaining some momentum after a quiet first quarter, thanks in part to the Great Singapore Sale, the opening of Ion Orchard and Orchard Central, and news about the high pre-commitment levels in upcoming malls. With the opening of Orchard Central and Ion Orchard, some 613,548 sq ft of space has been added to private stock along Orchard Road.

This represents a 15.7 per cent increase to private Orchard Road stock in Q2 this year. As a result, the occupancy rate for Orchard Road dropped 11.5 percentage points from 95.3 per cent in Q1 2009 to 83.8 per cent in Q2. Average rents in the Orchard Road basket of prime retail space that CBRE tracks saw a 2.9 per cent dip quarter-on-quarter. As at H1 2009, prime Orchard Road rents have fallen 6 per cent.

There is no doubt that retailers are increasingly being challenged by the economic downturn that is driving down tourist numbers and local spending. Coupled with high overhead costs, retailers face the prospect of not being able to achieve their projected turnover. But this is probably a short term view of the situation. Fundamentally, there are factors working in favour of retailers.

Market talk has also been rife with concerns about supply looming in the two new integrated resorts (IRs) and how it would impact rents in Orchard Road and the rest of Singapore. Again, the concern of over-supply may be premature. Continue reading →

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Posted in Office / Retail / Industrial, Property Market / Real Estate

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