Prime retail rents ‘stabilising’ after 2-year decline: Savills

Prime retail rents in Orchard Area rose by 0.4% in the first quarter of 2022.

Real estate analyst, Savills, said prime retail rents are showing signs of stabilising after reporting a two-year decline, adding that strict border rules and social distancing measures could have dampened overall rental growth.

Savills said in its latest report that monthly prime rents in the Orchard Area went up by 0.4%, on a quarterly basis, to $21 per square foot (psf) whilst in Suburban Areas, it rose by 0.5% quarter-on-quarter (QoQ) to $22.90 psf.

But, as this happened, Savills noted that most COVID-19 safe management measures are still existing in the first quarter of 2022, prompting retailers to remain cautious amidst uncertainty over the pace of recovery.

“Footfall and sales in the Central Business District have yet to return to normal levels as most offices were still either operating remotely in whole or adopting hybrid arrangements, resulting in a decline in catchment densities for retail space in the Downtown Core Planning Area,” Savills further pointed out.

It also said the slow return of human traffic may have led to vacancy of retail spaces such as The Assembly at Raffles City.

Data from the Urban Redevelopment Authority, its retail rental index for the Central Region declined by 0.4% QoQ after registering a short-lived recovery in the previous quarter.

Follow the link for more news on

Savills

singapore prime retail rents

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia