Research Centre

Asia Pacific Retail Trends Q3 2016


28 Oct 2016

Overall leasing demand in Asia Pacific remained subdued in Q3 2016 as international retailers retained a cautious attitude towards expansion

  • Flight to quality was the main focus and competition for prime space intensified as more retailers shied away from secondary locations. Most retailers remained cost sensitive and leasing transactions took longer to close.
  • Activity diverged across markets, with demand once again led by Australia and India. In Australia, leasing activity remained firm thanks to strong demand from new entrants and expansion from overseas. In India, major cities continued to enjoy solid leasing demand from international retailers, supported by the steady flow of new high quality retail supply.
  • Most other markets were quiet. Retail market sentiment in Hong Kong remained poor and retailer continued to display a cautionary attitude towards expansion, while in Singapore healthy enquiries failed to translate into actual leasing transactions and the overall market remained downbeat.
  • Leasing demand will remain stagnant over the remainder of 2016 as retailers focus on their business plans for next year. However, more short-term leases are expected to be agreed in Q4 2016 as retailers seek to capture festive sales. The pop-up store model is increasingly popular across the region as retailers look to test new brands and generate excitement among consumers.

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James Pitchon
Executive Director

Phone: +66 2 119 2901
Fax: +66 2 685 3307
CBREThailand
Executive Director
james.pitchon@cbre.co.th
Sales Staff
Jariya Thumtrongkitkul
Associate Director - Retail Services

Phone: +66 2 119 2792, +66 2 119 2795
Fax: +66 2 685 3307
CBREThailand
Associate Director - Retail Services
jariya.thumtrongkitkul@cbre.co.th
Sales Staff