Occupancy Rates Outlook
(%)
Suburban
2017
Orchard Road
92.5
95.2 95.1
95.7
94.6
95.0
95.5 95.5
2010 2011 2012 2013 2014
1
2015 2016 2017
Forecast
94.1
94.6 94.4
93.8
92.3
93.0
94.0 94.0
2010 2011 2012 2013 2014
1
2015 2016
Forecast
Sources: URA and Urbis.
1 Occupancy rates for 2014 are based on first three quarters of 2014.
Growth in prime retail rent
1
was healthy in 2014, with continued demand from retailers for prime
space. According to CBRE, prime retail rents in the Orchard Road sub-market in particular have
shown solid growth of 2.7% year-on-year. The Suburban sub-market has rebounded from a relatively
flat year in 2013 and registered a moderate growth of 1.3% year-on-year in 2014.
With high levels of occupancy and strong market fundamentals, prime retail rents are expected to
continue to increase across Singapore over the medium to long-term. Both the Orchard Road and
Suburban sub-markets are expected to grow around 2.0-3.0% per annum over the next few years,
thanks in part to an expected rebound in tourism and domestic spending.
Prime Retail Rental Growth Outlook
(%)
1.3
2.4
1.3
0.5
1.3
2.0
2.5
3.0
2010 2011 2012 2013 2014 2015 2016 2017
Suburban
Forecast
(1.1)
2.6 2.8 2.7
2.0
2.5
3.0
2010 2011 2012 2013 2014 2015 2016 2017
Orchard Road
Forecast
(7.1)
Sources: CBRE and Urbis.
1 Prime retail rent represents the typical ‘achievable’ open market headline rent which an international retail chain would be
expected to pay for a ground floor retail unit (either high street or shopping mall depending on the market) of up to 200.0
square metres of the highest quality and specification and in the best location in a given market.
Leading with Confidence | 83
