Rents have been in a three-year slump but analysts foresee a recovery.
The looming supply of new retail space to be installed in the next four years in Eastern Singapore is expected to pose a larger threat to the performance of the city’s struggling real estate investment trusts (S-REITS) than the spectre of online shopping giants, according to Moody’s Investors Service. Around 2.5 million sqft of retail space is expected to be developed until 2019, estimates Edmund Tie & Company. Such level of supply is expected to keep a recovery in rents to a minimum, Moody’s argued.
After a mild 0.1% recovery the earlier quarter, retail rents once again fell by 1.1% in Q2, according to data from the Urban Redevelopment Authority, extending a persistent downward trend since Q3 2015.
This story is from the August - September 2018 edition of Singapore Business Review.
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This story is from the August - September 2018 edition of Singapore Business Review.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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