MALL OWNERSHIP
CMT remains the largest shopping mall owner in Singapore, constituting a 14.3% share of floor space
in shopping malls with over 100,000 sq ft NLA. A significant gap exists between CMT and its nearest
competitors in terms of market share, with Pramerica (5.6%), Lend Lease (5.4%) and Frasers
Centrepoint (5.3%) being the closest competitors.
Share of Major Shopping Malls Floor Space by Owner
1
, 2014
(%)
CapitaMall Trust (14.3%)
Pramerica (5.6%)
Lend Lease (5.4%)
Frasers Centrepoint (5.3%)
Mapletree (4.5%)
Suntec REIT (3.0%)
Far East Organisation (3.0%)
CapitaLand (3.6%)
2
Marina Centre Holdings (2.5%)
Las Vegas Sands (2.2%)
City Developments Ltd (2.2%)
Singapore Press Holdings (2.1%)
Others (46.3%)
Source: Urbis.
1 Malls greater than 100,000 sq ft NLA as at end-2014. Share of floor space takes into account ownership stake.
2 CapitaLand’s share only accounts for malls directly owned by CapitaLand and does not include those owned through CMT.
RETAIL RENTAL & OCCUPANCY OUTLOOK
The fundamentals for on-going rental growth in Singapore remain in place. Singapore’s population,
personal incomes, tourist numbers, and therefore retail sales are likely to continue to grow. The
supply of retail floor space remains contained, and demand for space continues to increase as new
retailers enter the market. Singapore remains a favoured location for retailers trying to enter the Asian
market. Broadly speaking, recent additions to supply have been readily absorbed by the market.
JEM, Westgate and Bedok Mall all opened in 2013 with high levels of occupancy.
Retail market growth, which is contingent on on-going income growth, could however be limited by
a slowdown in Singapore’s economy. The tight labour market could hamper retailers’ expansion
plans, but could conversely put upward pressure on wages and support retail sales growth.
Based on Urban Redevelopment Authority (URA) data, occupancy rates have declined slightly in
both the Orchard Road and Suburban sub-markets over the first three quarters of 2014. The
occupancy rate of the Orchard Road sub-market has been artificially constrained by the addition of
Orchard Gateway, and the fact that the estimated pre-commitment rate of 97.4% at the mall has not
been taken into account. In reality, the occupancy rate of the Orchard Road sub-market over the
course of the year is forecast to be similar if not slightly above that in 2013. The decline in occupancy
rates over the course of 2014 in suburban areas can be traced back to the lagged effect of the
significant amount of retail supply in 2013, as well as further additions in 2014.
From 2015 to 2017, it is expected that occupancy rates will remain firm in both sub-markets,
notwithstanding slightly constrained occupancy in the Suburban sub-market as a result of another
year of significant additions to shopping mall floor space.
Independent Retail Market Overview
82 | CapitaMall Trust Annual Report 2014
