Retailer demand in the city sustains; High Streets more in vogue

• In Q4 2024, the net absorption in malls was limited to 0.07 million sq ft. The Suburbs submarket accounted for most of the leasing activity, at approximately 89%.
• Jewellery and fashion and apparel brands were the most active in leasing throughout the quarter. In the quarter, the suburban High Street market took the lead in terms of retailer interest.

Healthy supply in the city, with one mall starting operations in the quarter

• The completion of Sekaran Mall in the Suburbs submarket increased the city’s Grade A retail mall stock to around 7.1 million sq ft by end-2024.
• Despite supply additions, overall mall vacancy in the city dropped by 20 bps q-o-q. Yet, the new completion was 100% leased.

Rents remained mostly stable across all premium assets

• Overall mall rents dropped marginally, by 0.6% q-o-q, with the newly completed Sekaran Mall quoting lower rents than the market average. However, rents remained mostly unchanged across existing malls.
• Despite steady demand for premium-quality malls, rents in prominent High Streets appeared to appreciate more, driven by increased traction in these retail hubs. Capital values rose marginally, by 1% q-o-q, following a steady growth trend.

Outlook: Leasing is projected to stay strong

• Strong demand for retail space is anticipated to continue, with an influx of local and national retailers and footprint expansion by existing ones.
• Over the next five years (2025 to 2029), 6.2 million sq ft of mall space is expected to be added to the market. Lulu Mall and SPR Market City in the Suburbs submarket are couple of the prominent malls due for completion.