Here's a rundown of how APAC retail rents fared in Q4 2020

Rents declined for the fifth consecutive quarter.

Retail rents for the most premium locations in shopping centres continued to face downward pressure in 4Q20 although there were some signs of stabilisation. According to JLL, the aggregate Asia Pacific Retail Rental Index recorded its fifth straight quarter of decline as most of the 18 tracked markets saw another contraction.

Here’s more from JLL:

Southeast Asia
Relaxation of social distancing measures and positive news on vaccine development lifted retailer and consumer confidence in Singapore, as retail business activity and sales picked up. Nonetheless, many retailers remained cautious with operational and expansion plans as well as lease commitments, given that retail sales were generally still below pre-COVID-19 levels.

The rate of decline in retail sales in Thailand decelerated in October, suggesting a broad-based retail recovery across the country. Meanwhile, F&B brands continued to underpin new leasing activity across Bangkok with notable 4Q20 openings including Garret Popcorn, Tim Ho Wan, Beard Papa’s, gram, Bonchon and Taco Bell. On the contrary, some prime grade retail centres in the city centre that rely on tourists and expats for foot traffic saw exits by a number of small tenants.

Jakarta witnessed a few new store openings, including online- based businesses such as Sociolla, a beauty e-commerce platform, and Pomelo, a Bangkok-based online retail company. Additionally, the quarter saw the relaxation of some social distancing restrictions. For example, gyms were allowed to operate at 25% capacity, while cinemas were allowed to reopen at 50% capacity with new regulations, including the prohibition of food or beverages.

Vacancy levels in Manila increased during the quarter, due primarily to store closures from small local fashion brands which have ceased operations or fully migrated to online platforms. On the other hand, there were some notable store openings from foreign fashion brands, and local and foreign F&B brands, including Champion, Monki, Forever 21, Pull n Bear, Frankie’s and Hot Star.

India
Footfalls and sales have shown improvement in shopping malls in Delhi and Mumbai, and malls in both cities have seen increased demand by retailers. For instance, Uniqlo opened a new store at Ambience Mall in Gurgaon. However, overall performance is still below pre-COVID levels as consumers remain cautious, and some retailers have implemented innovative technologies to maintain social distancing between shoppers and staff.

Australia / New Zealand
Retail spending across most of Australia improved during the quarter, including in Victoria where the government begun to ease restrictions on the retail and hospitality sectors in
late October which helped drive a large rebound in spending. Leasing inquiries in Victoria have also marginally risen post- lockdown. However, overall retail leasing demand remains weak, as national retailers remain hesitant to expand store networks, while smaller operators continue to face challenges around COVID-19 driven debt and pre-existing issues.

Read the full report here.