THE DEVELOPMENT OF RETAIL SPACE IN SINGAPORE

Abstract

As planning has strong links with the property market, any planning initiatives by the government is likely to affect the market. In Singapore, the Revised Concept Plan 1991 further intensified retail decentralization and had marked a significant change to the retail scene. This study attempts to examine the effects of this planning strategy on the retail market. The study will look at the supply, occupancy rate, the capital values and rental values of each retail sub-market that has evolved over time. It is found that as a result of the policy, the development of suburban retail facilities had increased tremendously over the years. The occupancy rate had been increasing in the initial period and held firm since then. The performance of the rental and capital market was stable with the rental index showing an upward trend, with minor setbacks due to poor economic conditions. On the other hand, due to its heavily built-up nature and prestigious location, the supply in Orchard Road shopping belt and occupancy rate were not very much affected except during periods of economics crisis where retailers began to shift their focus to local shopper. Unlike the suburban market, the rental market in Orchard Road exhibited a declining trend but the performance of the capital market was stable. The suburban retail facilities had also outperformed other parts of the Central Region with both the supply and occupancy rate of the Fringe Areas, the Downtown Core and the Rest of the Central Area registering a downward trend.