Singapore Stock Market News

Singapore Property - Retail - plodding along

StockFanatic
Publish date: Fri, 29 Aug 2014, 01:02 PM
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Singapore retail sales went through a sluggish 1H14. However, retail rents and capital values have remained relatively stable. Looking ahead, while significant upside is capped, strength in retail spending could come from positive GDP growth and expectation of a modest hoh recovery in tourist arrivals. This should lead to a steady rental and capital value outlook.

Key sector concerns include rising retailing cost as a result of labour crunch, which could delay retailers' appetite for space, while the ample supply of new retail inventory could dilute sales productivity in the near term. We remain Neutral on the sector.
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