What about the retail rental market?

The retail rental market in Singapore has shown signs of improvement and stability from 2022 to 2024. Here are some key points:

- Retail rents have been on the rise, with a 0.4% year-on-year increase in 2023, followed by a 0.5% year-on-year increase in 2024. This marks the second consecutive year of growth after a decline in 2020 and a flat period in 2022.
- In the fourth quarter of 2024, retail space rents in the central region rose by 0.6%, slightly higher than the 0.3% increase in the third quarter of 2024.
- The retail vacancy rate has decreased, reaching a decade-low of 6.2% by the end of 2024, indicating improved occupancy rates.
- Despite challenges such as high labour and material costs, as well as competition from e-commerce, the market remains attractive for international brands. The recovery in tourism and a tight labour market are expected to sustain domestic consumption and support the retail sector.
- Experts predict that overall prime retail rents could recover to pre-pandemic levels in 2025, although growth may be capped by factors like the strong Singapore dollar and inflationary pressures.

Overall, the retail rental market in Singapore is experiencing a gradual recovery with increasing rents and improving occupancy rates.