What does 2018 bring?

“New Retail”

More more consumers are moving to e-commerce but most dislike having to wait for theeir delivery. With this, retail experiences are transforming to “New Retail”, with online, experience in physical stores, make their purchases and get goods delivered to the patrons.

Examples are Lazada shoppers who have the option to collect their goods in CapitaLand malls. Uniqlo came up the concept of allowing patrons to collect their online purchases at their stores.

The major change will be when it comes under local tax regime. This may act as a catalyst for online retailers to hold physical space for consumer to touch and feel.

With upcoming new supply of retail space in suburban and other city areas may exert downward pressure on rents of retail spaces in both subzones.

Orchard & CBD

The retail shop market in Singapore has expanded geographically outside the familiar shopping belt of Orchard, even after revamp and new completion of shopping malls such as ION Orchard, 313@Somerset and Orchard Central. Not withstanding, the arrival of overseas brands such as Apple, Pablo and Don Quijote into the area attracted more crowds and reinforced Orchard.

Many foreign retail brands strategically choose Singapore to be their first point of entry for penetrating South East Asia market. For instance, Don Quijote opening at Orchard Central, Hardy Hardy (American youth label) and Gentle Monsteropening at ION and Muji shop of 17,653 sqf as their first flagship store at Plaza Singapura.

Luxurious brands are focusing on enhacing better shopping experience. Some are launched large store, such as LongChamp, 2,960 sqft and Salvatore Ferragamo, 3,121 sqft at ION Orchard respectively.

Suburban

More malls are also undertaking to revamp shoppers’ experience, such as Century Sqaure at Tampines. The one to watch for is Northpoint City with a massive new 1.33m sqft, with an expectation of 400 retail and F&B outlets. More shopping malls have mushroomed in the suburbs providing a new burst of opportunities to reach out to more consumers.  The effect resulted in consumer could easily access more brands and even international brands, which have also shifted some of their focus to the suburbs.   This led to the growing significance and popularity of suburban locations.

Pipeline Supply

In 2018, completions can be expected at Paya Lebar Quarter, Raffles Hotel Shopping Arcade, refurished Century Square. Total new supply is estimated to be 2.8m sqft.

Beyond 2018, major completions are at Project Jewel in the East and Funan in the Central Region.