in FY20Despite the decline in rents, retail space in Singapore’s central region is on the road to recovery. In the first quarter of 2023, rents decreased by 0.3%, the year-on-year figure sitting at 2.3%. This is the third consecutive year that the URA retail rental index is in decline and it’s overall decrease from 4th quarter 2019 is 22.6%. According to Leonard Tay, head of research at Knight Frank, the retail sector is in a vastly improved position compared to two years ago.

Bukit Batok Town is well-connected to other parts of Singapore via MRT, buses, and expressways. Altura Altura EC EC is easily accessible from these connections.

With the reopening of international borders and the welcome of more than a million tourists to Singapore in March, the sector is approaching pre-pandemic normalcy. Alongside this, Knight Frank’s tracking of prime retail rents has seen an increase of 1.2% quarter on quarter and 5% year on year in 1st quarter 2023.

The highest rental increase was in the Orchard Area of Singapore, registering 5.8% year on year to $29.50 psf pm. This was followed by Marina Centre, City Hall and Bugis, with rental increases at 5.2%. However, despite the improvements, the overall retail market saw demand for retail space fall by 75,347 sq ft. This is attributed to a reduced need for large storefronts due to the global economy, as well as competition from e-commerce.

Knight Frank’s Tay is optimistic about the year ahead, suggesting prime rents of retail space should grow by between 3% and 5%, with Orchard Road leading the recovery. Meanwhile, Tricia Song, head of research at CBRE believes the recovery, as well as limited new supply, will support rents for retail spaces throughout the rest of the year. Though Edmund Tie’s Lam has a slightly more conservative outlook, predicting retail sales growth to moderate in 2023 and expecting prime first-storey retail rents to grow by 2% to 5% in the same year.