Despite this rebound, the retail sector is unlikely to get any help from tourists. Singapore’s tourism industry will continue to be hamstrung as border reopenings are taking place very gradually. “Reopening of international borders is envisioned to happen more gradually than earlier anticipated given the protracted Covid-19 situation globally,” says CBRE in a retail sector update.
Both Frasers Centrepoint Trust (FCT) and CapitaLand Mall Trust (CMT) have reported spectacular recoveries in shopper traffic for the month of July. This is borne out by anecdotal evidence during the week of Sept 7–11 where Jewel was reportedly packed with shoppers. Similarly, Jem, owned by Lendlease; JCube owned by CMT; and Waterway Point which is part owned by FCT, saw crowds too.
Richard Ng, CEO of FCT’s manager, said in a recent briefing that tenant sales in July have on average rebounded to pre-Covid levels, while shopper traffic has rebounded to 60–70% of pre-Covid levels.
