Retail and office sectors in Singapore facing challenges

According to Urban Redevelopment Authority, office prices and rents in Singapore fell by 1.4% and 1.1% in Q2 2017 compared to the previous quarter, respectively; while the stock of office space increased to 76,000 sq m, edging up the overall vacancy rate to 12.4% from 11.6% in Q1 2017.

Meanwhile, the retail market marked the 10th consecutive quarter of decrease in Q2 2017 with rents declining by 1.2% and vacancy rates rising to 8.1% quarter-on-quarter, in the context Amazon’s entry into this island state exerts downward pressure on sales of physical stores. Regarding to M&A activities, RB Capital Group announced to put up for sale the 300-key Park Hotel Farrer Park which opened in May 2017 as part of Farrer Square, a mixed-use development comprising 42 medical suites and a retail podium.