Jan 28

Falling Rentals for Condos

During the time that the property market was really experiencing a very successful boom, it seemed that it was the tendency for most landlords to divide retail spaces into even smaller spaces, yet while charging very high fees per square foot for these smaller retail spaces. Now because of falling rental prices and a lack of sales by tenants, landlords are trying to attract tenants that require larger spaces in Cairnhill 9 Ascott that they once had declined in the past.

Cairnhill Nine Ascott Capitaland

Though the process of getting a mix of tenants may aid in the occupancies of the mall and football, this will not really help much with the anticipated fall in Ngee Ann City rents next year for Orchard Condo.

Projections for the year of 2016 regarding retail rentals are said to go back as far as five percent according to estimates by consultants. It is true that so much vacant Takashimaya Shopping Centre retail space is a real worry.

It could take very close to about four years to be able to fill up the retail space, based on the average net demand for retail space over the past three years across the entire island.

Cairnhill 9 Paragon Shopping Centre

An analyst stated that with the rise of the 2.44 million square feet of Wisma Atria retail space being constructed next year, the ongoing attempt of landlords to fill both new and existing retail places is projected to certainly intensify. There is a belief that rents in the Central Region will drop by as much as 3.5 percent in the year of 2016.

With the 3 percent decline in rentals over the entire island, there will likely be seen also a major crunch in manpower and there will be fewer tourists for Somerset Grand Cairnhill Condo. The fortified Singapore dollar along with ecommerce sites will also make a financial hardship for retailers across the island next year.

Somerset Cairnhill Condo Ascott

Cairnhill Nine Condo Data provided by the Cairnhill Nine Urban Redevelopment Authority revealed that there was a drop by 2.9 percent in retail rents for the Central Region, which includes 22 planning areas that span across the central and fringe areas that extend to Queenstown, Geylang, Bishan and Sentosa for the first three quarters of the year. Some regions that have been followed by other analysts show a more significant drop in Cairnhill Nine Ascott prices. Being the lowest since the first quarter of the year of 2006, a current report stated that prime first storey rentals across the island had dropped by 3.7 percent, making the price to be S$30.90 per square foot.

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Jan 27

Parc Riviera Condo by EL Development

Across the island, rents for retail spaces on the first storey have dropped by 1.2 percent during the last quarter of the year of 2015 from the previous quarter, being down now to about S$30.50 per square foot, as explained in the statement from an international property consultancy.

Thus there has been a decline for three consecutive quarters, which is equivalent to a more drastic drop of 5.9 percent for rents for the entire previous year for Parc Riviera West Coast Vale, following a decrease in the year of 2014 of 0.3 percent. Weak consumer sentiments were a major contributing factor to the decline seen last year due to many economic global situations that presented themselves as very unstable.

Parc Riviera Condo West Coast Vale

In the Orchard and Scotts Road area, average rents for first floor retails spaces decreased each quarter by one percent, which thus equals a drop of five percent per year to make the rent to be equal to S$38.05 per square foot in the fourth quarter of the year of 2015.

However , this is to be noted that this is yet smaller than the decrease that has taken place in suburban areas like Parc Riviera West Coast; because the rents there decreased by 1.2 percent each quarter for first floor retail spaces, which added up to a decrease of 5.7 percent for the year, and thus brought rents down to S$30.70 per square foot during this time.

This discovery brings about real concerns about the weakness of the Orchard and Scotts Road shopping area in comparison to the suburban areas.

The lack of new completions over the next four year in the Orchard and Scotts Road area was what aided first floor retail space there. There will only be the development of a few new retail spaces due to asset enhancement initiatives and other projects that offer mixed usage for EL Development West Coast Condo.

EL Development West Coast Parc Riviera

There were more drastic rent drops for first floor retail spaces by as much as 1.4 percent for each quarter, which equates to a decrease of 6.9 percent for the year for other city areas that comprise 321 Clementi, Chinatown, Bugis and Suntec City, with rents being equal to about S$21.80 per square foot for the fourth quarter.

The larger rental decline that occurred in other city regions was contributed to the fact that the area had been dependant on weekday office workers for the bulk of their sales. A property consultancy projected that the anticipated competitions near Japanese Garden, combined with weak consumer outlook likely will put more pressure to yet decrease rents even more, especially in various regions of the city.

Due to the retail challenges last year, it was necessary for some brands to close their stores, which included the home grown label M)phosis. the Japanese fashion brand Lowrys Farm and the Hong Kong retailer of Goods of Desire. Major retails companies that include Iestan, FJ Benjamin and Metro have also reported for last year low sales rates that proved to be disappointing indeed. To avoid competition from EL Development Condo and to expand their outreach, some retailersare using omni channel marketing.

Parc Riviera Tender near Jurong East Outlets

The experts agree that most Parc Riviera West Coast Vale landlords have adapted to being more open regarding new retail concepts to prevent retail fatigue.

Take into consideration for instance the fact that after Muji had opened its first café that is called Café and Meal Muji in the month of September close to an existing Muji store in Paragon, it saw about an increase of 40 percent in relation to sales for the store. In addition to French chic fashion and accessories, the lifestyle concept store Latuelle is now also offering a café with complete service. The second outlet for this chain opened at Wisma Atria, with the first outlet having been established in the month of April in the year of 2014 at Orchard Gateway.

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Jan 22

Investors in The Visionaire EC Sembawang

Singapore investors have developed a strategy of targeting liquid markets overseas, and it seems to be paying off.There has been an increase of 49% more overseas Visionaire Qingjian Sembawang properties bought by Singapore investors since 2014 witha value of$26.3 billion purchased, which has leaped from $17.6 billion bought the previous year.

Both heavyweights GLP (Global Logistics Properties)and GIC have made a fair bit of contribution to these record breaking figures, however Singapore developers and Family offices also purchased smaller and medium sized properties in light of the dour outlook for property investment The Visionaire EC back in Singapore.

Singapore Investors The Visionaire EC

Singapore has remained the 4th largest international property investor, a place it has held since 2014. Ahead of Singapore is the US, Canada and Hong Kong, with China in 5th place. However Singapore still has a fair way to go in order to catch up with these thriving countries, with both Canada and Hong Kong spending in excess of $30 billion in 2015.The United States of America is well ahead in this field, with spending exceeding $58 billion.

A specialist explains that it is not surprising Singapore is ranked in 4th place for The Visionaire EC Qingjian. While Singapore holds a high amount of wealth, due to the small size of this nation it is difficult to exceed the spending of larger nations such as Canada and The United States of America.

In addition to notable property investors such as the GLP and the GLC, “Temasek’s Holdings,” “ARA asset management group,” “Mapletree” and the “Ascendas Real Estate Investment trust” have led the charge on obtaining valuable properties overseas.

Overseas Singaporeans for Visionaire EC Sembawang

Various assetclasses such as development sites, office, retail, industrial, hotel and service Visionaire Qingjian Sembawang were included as long as the transaction met the required purchase of above US$10 million. For Singapore investors, industrial property was the most sought after asset class in 2015, particularly in the United States of America.

Singapore investors made 126 transactions of Qingjian Realty Canberra Visionaire that qualified to be included in the total value of $26.3 billion worth of international properties. This is less than the 139 made in 2014 though this has shown to be a massive leap since 2009 when there were only 29 transactions made. This is a result of the number of Singapore investors purchasing overseas properties having doubled from 33 in 2009 to 68 in 2015.

The increase in the number of Singapore investors in The Visionaire Qingjian purchasing overseas properties is expected to be due to the desire to improve domestic wealth. International property markets are desirable in the sense that there is market transparency, stable fundamentals and regulatory support.

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Jan 21


With the current fluidity in economics and retail today many landlords in major malls are adjusting their leases and prevent an exodus of sought after tenants.

This move comes as many brands are exercising their clout by threatening to move their business elsewhere unless they are giving concessions as they are facing increased cutthroat competition among the name brands as well as inroads caused by e-commerce, which is forcing them to downsize as they are also facing shortages in skilled staff to run their current venues.

For example, Decathlon, a French sporting goods retailer will be opening a 35,000-ft.² outlet in the Viva Business Park in Chai Chee. They locked in a 15-year lease and got a similar deal for a 2nd store. They are opening in the City Square Mall in June.

Economics of Today Condo Launches

Decathlon is planning to open 21 stores, each with over 15,000 ft.² of space and is looking to have leases of up to 30 years in length.

Other brand names such as Victoria’s Secret, which is opening their flagship store here this year are also reported to have longer than the standard three-year lease that Singapore Mall owners used to routinely sign.

Experts say there has been a trend by big selling brand names over the course of the last couple years, though there have been no actual studies made of these lease practices, as of this time.

One analyst who requested that their name not be given out, pointed out that brands that get such long leases are the ones that Mall owners feel will attract customers and thereby bringing in other retailers who wish to be in close proximity to get secondary sales.

Rental Rates for Singapore Canberra Condos

With longer leases, also, come lower rates for rent, which is also enticing tenants to lease for longer time frames.

For example, Orchard Road dropped their standard of $38 per square foot per month as of the last quarter 2014 to $36.85 during the same period in 2015.

Other experts have pointed out that is now the tenants who drive the business and landlords are now aware of it and in order to fill their malls and have no vacant storefronts. They need to cater and be flexible to the various brand’s desires.

What this means for the shopper is that with longer leases, you’ll get a wider variety and lower prices to boot. This is according to senior retail lecturer Sarah Lim.

This is due to the fact that rent makes up a large component of the price on retail goods. Therefore, if the rent stays the same, during the length of the lease, the price to the customer is stable as well. She went on to say leases are good for property owners in sluggish times as the store the renters are locked in for longer periods of time, which guarantees occupancy.

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