The current vacancy rate in the retail sector is the lowest seen in the last decade, standing at around 7.9 percent, according to CBRE’s latest report.
The current rate is a significant drop from 2009 when it was at 15 percent, CBRE said.
The vacancy rate in the retail sector saw a minor downward adjustment of about 1.1 percent during the second quarter this year, the study found.
James Hewson, CBRE manager, said the slow progress of the vacancy rate in the sector is primarily the result of a delay in the completion of retail projects combined with an influx of new entrants into the local market.
“We expect an uplift in vacancy rates over the coming quarters due to the anticipated stock completion,” he said.
According to the research, retail supply increased by 7 percent in the second quarter with the completion of two projects – Midtown Mall and Olympia Mall.
Midtown Mall added 4,881 square metres of net leasable area to the community mall sector, while Olympia Mall added 166,084 sqm of leasable area to the shopping mall sector.