Q2 Orchard Road rents near pre-Asian financial crisis level

Q2 Orchard Road rents near pre-Asian financial crisis level
By Loh Kim Chin, Channel NewsAsia | Posted: 28 June 2007 2132 hrs


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Orchard Road, Singapore (File Picture)



SINGAPORE: Current rentals in Orchard Road appear to be fast approaching pre-Asian financial crisis level.

According to property consultant CB Richard Ellis, rents of units with the highest traffic at Orchard Road registered an average of S$34.40 per square foot per month in Q2.

This was just 70 cents below the average of S$35.10 per square foot per month in 1996.

CBRE cited the strong rebound of the Singapore economy and efforts to rejuvenate Orchard Road as reasons for the spike in rents.

It said that landlords were actively seeking out fresh foreign brands to give their shopping centres an international profile.

During the April-to-June period, more new brands from Europe, US and Australia set up shops here.

At the same time, existing brands such as Celine, Chanel and Cartier have either expanded their range of merchandise or retrofitted their boutiques.

CBRE expects prime Orchard Road rents to grow between 4 and 7 percent for the rest of the year.

This is due to the lack of new supply of shop space in Orchard Road as well as the healthy tourist numbers from Indonesia, Australia, China and India.


- CNA/so