Singapore prime retail rents up 3.4% in Q1

Rents in the Marina Centre, City Hall, and Bugis micro market saw the greatest annual growth.

In 2023, the Singapore Tourism Board (STB) reported a total of 13.6 million visitor arrivals, falling within its forecast of 12 million to 14 million visitors. As of February 2024, visitor arrivals have stabilised with at least one million each month for a year since March 2023. 

According to Knight Frank, with the first two months of 2024 recording 1.4 million visitors each, visitor arrivals to Singapore are steadily approaching pre-pandemic norms. 

Here’s more from Knight Frank:

Many globally acclaimed events were held in Singapore in the first three months of the year, such as concerts by international acts and the biennial Singapore Airshow. In addition, the implementation of the mutual 30-day visa-exemption arrangement between Singapore and China in early February contributed to Chinese tourists regaining the pre-pandemic lead as the top source of arrivals in the first two months of 2024.

The average gross rent of prime retail spaces island-wide in Q1 2024 increased 0.6% q-o-q and 3.4% y-o-y to S$27.20 psf pm (Exhibit 1). On a quarterly basis, prime retail rents in the Orchard micro market grew the most at 0.8%, in part benefiting from the spinoff effects of international business and entertainment events. 

On a yearly basis, prime retail rents in the Marina Centre, City Hall, Bugis micro market increased the most at 4.4%. At the same time, growth of prime retail rents in the Suburban micromarket eased, showing signs of stabilising from the runup during the pandemic era.