Singapore prime retail rents up 1.5% in H1 2024

Retail rents grew by 3.8% in Q2 alone.

In a recent report, Knight Frank said that as of June 2024, the Singapore Tourism Board (STB) reported a total of 8.2 million visitor arrivals, with numbers peaking in March to almost 1.5 million. The Taylor Swift and Coldplay concerts which took place in Singapore in March and January respectively, boosted tourism numbers as many concertgoers arrived from overseas to attend the concerts. 

“However, the impact of these concerts was temporary in nature, as visitor arrivals fell to 1.4 million in April and about 1.3 million in both May and June, subsiding to stabilised levels after the “concert-induced boom” in the first quarter of 2024,” the report added.

Here’s more from Knight Frank:

Average gross rent of prime retail spaces island-wide in the second quarter of 2024 increased 0.9% q-o-q and 3.8% y-o-y to S$27.40 psf pm (Exhibit 1). In the first half of 2024, prime rents island-wide increased 1.5% as the post pandemic recovery was held in check by the challenges of increased operating costs due to inflation. 

Prime retail rents in the City Fringe micromarket increased the most at 1.3% on a quarterly basis to S$23.70 psf pm. At the same time, the Suburban micromarket reflected the highest growth of 4.6% on a yearly basis to reach S$26.50 psf pm. 

Although rents remained on the path of improvement supported by new openings from both local and foreign brands drawn to Singapore’s location as a central hub for recreation and entertainment, the high cost of retail and food and beverage (F&B) business, as well as the strong Singapore dollar tempered growth.