AVERAGE rental values of prime retail space in Singapore remained unchanged but the pace of growth in resale prices of prime retail space continued to slow in the third quarter 2013, property consultants DTZ said.
The average rental value of prime retail space in the other city areas halted its decline in Q3, after falling by 0.7 per cent quarter-on-quarter (q-o-q) in Q1 and 0.3 per cent in Q2 this year.
This followed the completion of some of the asset enhancement initiatives at Marina Square and Suntec City, which have increased shopper traffic in the area.
The average rental value of prime retail space in Orchard/Scotts Road remained unchanged at S$30.23 per sq ft per month in Q3 - more resilient than previously expected thanks to the healthy pace of growth in tourist arrivals.
In the suburban areas, retail rents were also unchanged in Q3 despite increased competition with the completion of new malls.
Besides Jem which was completed in Q2, other developments expected to be completed by the end of 2013 include Westgate and Bedok Mall.
These new suburban malls have been successful in attracting international retailers such as Victoria's Secret, Books Kinokuniya, Coach and H&M.
The resale price growth of prime strata-titled retail space in all regions continued to slow in Q3, as transactions fell by more than 60 per cent q-o-q from 382 in Q2 to 126 units in Q3 - the lowest number of strata-titled retail transactions since Q4 2011 when 122 retail units changed hands.
The average resale capital value of prime resale retail units in Orchards/Scotts Road and the suburban areas both grew by 1.7 per cent q-o-q in Q3, after registering growth of 2.6 per cent and 2.5 per cent respectively in the Q2.
Transaction volume of strata-titled retail units was affected by the implementation of the new Total Debt Servicing Ratio (TDSR) framework from June 29, 2013, which has lengthened the loan application process for property purchases and reduced the amount of loans available for multiple-property buyers.