Commercial Retail

Average rents increased 9% to JPY26,350 per tsubo in H1 2021.

Out of all the regional markets, Sapporo is in the worst position.

This is a 7% decline from the start of the pandemic in Q2 2020.

Island-wide prime retail rents slipped 1.9% QoQ to S$25.70 psf pm in Q3.

Each deal was worth over $100 million.

Luxury brands are still wary of going to the high streets.

Thanks to residential catchments that drive demand.

Vacancy in Mong Kok increased 2.9ppt to 18.9%.

Tenants have been looking for small to medium-sized shops with lower rents.

The worst is already behind us, but rents won’t start picking up until 2022.

Thanks to foreign luxury brands’ resilience amidst the pandemic.

Prime gross rents declined by almost 3% in Q2.

Investors prefer these assets due to their stable earnings.

Prime high street rents slipped 0.3% in the same period.

Major retailers such as Naiise, Dimbulah Coffee and Manekineko had to shut down their stores.

Rents in regional and sub-regional areas fell 5.4% and 2%, respectively.