CONCLUSIONS
The fundamentals for the Singapore retail market are highly favourable for long-term market growth.
Population growth remains healthy; it is a hub for tourism, and the broader economy has shown solid
long-term performance and the capacity to rebound strongly from downturns. Over a long period, the
supply of floor space has remained in line with demand, thereby allowing rents to increase.
The market has recently weathered a number of negative influences such as a drop in tourist
numbers (particularly from China), moderate economic growth and slowing growth in retail sales.
Notwithstanding this, occupancy rates across the market have remained healthy, and growth in rents
has continued.
This long-term market strength is allowing additional floor space supply to be brought into the market
without causing significant fluctuations. A number of new projects will be delivered over the next couple of
years, but history suggests that this will only have a modest impact on rents and occupancy rates. The new
developments are mostly going into growth areas where demand growth is much stronger.
The fundamentals that have supported the market performance in recent years are expected to
rebound over the medium-term. We do not expect the downturn in tourist numbers to continue for too
long, while growth in sales from local residents should also rebound alongside the wider economy.
Broadly speaking, therefore, the Singapore retail market presents solid medium and long-term
prospects. Well-located malls that are well managed should be well positioned to take advantage of
future growth.
Jack Backen
Director
Urbis
20 February 2015
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arising, or event occurring, after that date which may affect the validity of Urbis Pty Ltd’s (Urbis) opinion in this report. Urbis prepared
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Independent Retail Market Overview
84 | CapitaMall Trust Annual Report 2014
