SINGAPORE - 26 May, 2014: ION Orchard department store. ION Orchard has 335 food and retail outlets opened in 2010

In its latest report on regional retail trends, CBRE Research has found that F&B entrants made up the largest proportion of new entrants in Asia Pacific retail markets in 2015. 33 per cent of new brands which opened in these markets were captured under the Coffee and Restaurants category in the CBRE survey. This is higher than the 22 per cent captured in the 2014 survey. The survey, CBRE Research’s annual monitor of cross-border retailer activity, found that the number of new retailer entrants into and across the region continued to rise in 2015. More than 500 new entrants were recorded over the course of the year.

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New entrants are defined by CBRE as cross-border retailers which opened their fist standalone store for trading during the year. Strong consumer demand for retail-tainment continued to support the growth in the number of new F&B entries across Asia Pacific.

The survey showed that Singapore ranked second in the Asia Pacific region for the number of new entrants with cafes and restaurants making up 23 of the 63 new entrants. CBRE Research expects that the retail market headwinds in Singapore will in fact create opportunities for international retailers to enter these markets as rents decline.

In Q1 2016, rents for Singapore’s prime Orchard Road and the suburbs declined, albeit at a more controlled pace due to limited prime space. Prime Orchard Road rents fell 0.6 per cent from last quarter to S$42.85 psf/ month in the first quarter of 2016, while prime surburban rents inched downwards by 0.8 per cent to S$29.65.

Source: CBRE

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