Commercial Retail

But retailers are still negotiating revenue sharing arrangements with developers.

Rents fell 12.9% to S$26.60 per square foot per month in Q1.

The sector’s recovery won’t start until 2022.

Not only does it rejuvenate the development, it also preserves the memories people have of the place.

Retail mall stock per capita is low in Korea relative to its global peers.

Designers must be adaptive to the changing times in creating spaces.

Prime street shop and major shopping centre rents contracted by 4.9% and 4.8%, respectively. 

He believes the two major sectors that will drive the real estate industry is the reversal of urbanisation due to COVID-19 and the growth of India and China's middle class.

The lack of direct government support for retailers will definitely take its toll on the sector.

Vacancy rates generally held stable, thanks to firm occupier demand.

Net absorption hit -41,500 sqm in 4Q20 as more store closures were recorded during the period.

This is 31% lower than the 10-year annual average.

The fall will be front loaded to the first half of 2021 before rents stabilise in the second half.

Rents are expected to stabilise this year and start improving by 2022, driven by limited supply in the upcoming years.

Vacancy pressure gradually eased in most core retail areas as many short-term leases were recorded.

But the 0.8ppt fall was not enough to turn the market around for the year.