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Savills: International brands bring life to retail market
Jul 05, 2012
by Cheryl Tay
More international retailers, especially luxury and high street fashion brands, have enhanced their presence in Singapore in Q2 2012, said a recent report by Savills Research. Some brands which have opened their first stores here include J. Lindeberg at Mandarin Gallery (pictured), Alexander Wang at the Hilton Singapore, Vince Camuto at Ngee Ann City and Tory Burch at Wisma Atria. Other brands, such as TALLY WEiJL and Shana, opened their first stores in suburban malls, typically in regional centres or locations with wealthy populations. According to Alan Cheong, Director at Savills Research, "International retailers often view Singapore as an avenue to create brand awareness in Southeast Asia. As long as the Southeast Asian economies sustain their growth momentum, Singapore will remain a key market for international retailers in their global growth strategies." Over at Orchard Road, prime rents remained flat at S$35.5 psf per month, while rents in suburban malls increased one percent to S$31.1 psf per month. "The central business district is fast becoming one of Singapore's trendiest lifestyle and entertainment hotspots," noted the report, adding that its wealthy live-in population is expected to increase to 23,300 in the next five years, from the current 17,000. It said that retail rents in the CBD range from single digits for conservation shophouses and to over S$20 psf per month for street-level units in Grade AAA office buildings. Savills expects Singapore "to remain a key market for international retailers in their global growth strategies. " However, prime Orchard Road rents will likely stay flat, given the constant fears of a recession that will weaken consumer spending, while prime suburban retail spaces are expected to be attractive despite economic uncertainties.