Asia's retailers upbeat in Q3

Asia's retailers upbeat in Q3

SINGAPORE: Asia's retail sector generally reported upbeat rental and occupancy rates in the third quarter of 2005 with China, Hong Kong, Taiwan and India particularly buoyant, a property consultancy's report said on Thursday.

The scenario was mixed elsewhere, with average retail rents in Bangkok largely unchanged, and Jakarta's dropping 6.3 percent from the second quarter, said CB Richard Ellis (CBRE).

CBRE said retail rents in Hong Kong rose 5.2 percent quarter- on-quarter driven by ongoing strong consumer sentiment.

Demand for specialty stores and exhibition halls and expanding convenience stores accounted for Beijing's prime retail rent index registering a quarter-on-quarter hike of 1.6 percent.

Average monthly rent for prime ground-floor space in Shanghai rose 6 percent quarter-on-quarter.

Property close to the metro line in New Delhi experienced "a big jump in prices, and rentals having gone up by as much as 50 percent to 60 percent in some of the most desirable locations", CBRE said.

Prominent developers are stepping up the construction of malls lifted by the expectation of a bigger percentage of foreign direct investment being allowed soon.

The retail sector in the Philippines jumped 22 percent year-on-year from January through July. CBRE forecast it will exceed US$9.4 billion for the whole of this year.

A dip in consumer confidence and rising domestic inflation were blamed for Bangkok's less than illustrious performance.

The retail sector in Indonesia's capital faces saturation with a growing supply of shopping centers, CBRE noted. -- DPA