RETAIL SPACE IN ORCHARD ROAD

Abstract

Ever since Orchard Eoad Area, referred to as Orchard Belt (OB) in this study, has taken over the Eigh Street and Shenton Kay as the leading retail centre in the late sixties, it has in recent years been challenged and threatened by both Harina/Eaffles City and the suburban shopping centres during the this decade, nevertheless, iaspite of these developients, OB has continued to doiinate the retail scene. On the other hand, the retail space larket at OB has seen a coiplete cycle of peak and trough during this decade, froi tiie to tiie, the deiand and supply of the retail space ?arket there has been affected by socio-econoiic and political factors which resulted in varying perforiances. In recent years, larked by strong econoaic growth, high tourist's growth and high purchasing power, the retail space •arket recovered reaarkably. The high occupancy rates at OB have proipted developers to redevelop the last few plots of land at OB. At the saie tiie, at the Harina/Baffles City area, a new and aassive developaent will take place, that is , the Singapore International Exhibition and Convention Centre (SIECC). Besides this, a new threat is eaerging following the governient's plan to decentralise comerclal activities away froi the city centre. The proposed developients at OB sill nevertheless continue to strengthen the position of OB >s t lending retail centre due to the unique qualities of Its location and fori of retail activity sithin it. They are lostly likely to influence the retailing activities sithin OB also. Betail developients at Scotts Bond sill have the greatest benefit as a result of the nes developients. Within the next five years an oversupply of retail space at OB is likely to occur and this sill have the effect of bringing rentals to a loser level than it is nos. Therefore, retail space osners lust be prepared for this phenoiena.