Singapore prime retail rents to increase by 1-3% this year

Analysts expect more collaboration amongst government agencies in 2025.

In a recent report, Knight Frank said that despite an expected full tourism recovery in 2024 from which to build further growth in 2025, Singapore’s retail sector remains challenging, as the strong Singapore Dollar coupled with inflationary pressures have resulted in many local consumers taking their spending to other countries where retail and recreation costs are more affordable.

Hence, prime retail rental growth for 2025 is expected to ease and stabilise within a projected range of between 1% and 3%.

Here’s more from Knight Frank:

Looking ahead, more collaboration among government agencies can be expected in 2025 to headline the Singapore brand and draw in visitors. And notwithstanding the tough operating environment, there are avenues for innovation and creativity by liberalising the retail market with more entertainment and lifestyle concepts.

The government could facilitate public and private sector partnerships to manage costs, inspire creativity, and promote value creation that retains the attention and spending dollar of local consumers and visitors.