DIFFERENCES IN RETAIL RENTS OF URBAN AND SUBURBAN SHOPPING CENTERS

Abstract

Traditionally, rentals of shopping centers in the Central Region are expected to be higher than suburban shopping centers. However, with rentals of suburban shopping centers experiencing rapid increases in recent years, rentals of suburban shopping centers are fast catching up with rentals of shopping centers in the Central Region. This study examines the rentals of the urban and suburban shopping center, to determine the magnitude of the difference from 2000 to 2006. in addition, it analyses whether rentals of suburban shopping centers have been growing at a faster rate than urban shopping centers. Our research findings have discovered that rentals of suburban shopping centers have been growing at a much faster rate than urban shopping centers. By 2006, rentals of suburban shopping malls have surpassed rentals of urban shopping malls, indicating that demand in the suburban regions have been growing at a much faster pace then urban regions. Reasons for suburban shopping mall rentals having higher rentals than malls in the Central Region can be attributed to the lack of new supply of retail stock in the suburban areas, the shift of resident population from the urban to suburban areas, increase in household income, shift from commuting by bus to MRT leading to a greater demand on suburban retail space of malls along the North East Line, greater transport accessibility and increasing Retail Sales Index.