Singapore retail vacancy hits record lows since 2014 | Real Estate Asia

Singapore retail vacancy hits record lows since 2014

The vacancy rate was at 6.5% in Q4.

According to a Savills report, the islandwide vacancy rate for retail space eased further by 0.7 of a percentage point (ppt) QoQ to 6.5% in Q4, the lowest since 2014. It was attributed to the improved take-up rate across the island, especially in the Central Region. 

Coinciding with the vacancy rate in the Downtown Core Planning Area hitting a record low of 6.6% (-1.3 ppt QoQ), the Orchard Planning Area also hit a three-year low of 9.0% (-3.1 ppts QoQ). 

Here’s more from Savills:

Meanwhile, the Suburban Area also experienced a healthy take-up with net demand coming in at 140,000 sq ft in Q4. However, although the islandwide net demand totalled 807,000 sq ft in 2023, the take-up rate is showing signs of a slowdown. The average take-up in the preceding two years was 1.03 million sq ft. 

Similarly, rental growth also showed signs of moderating, with the Urban Redevelopment Authority’s (URA) retail rental index slipping by 0.1% QoQ in Q4. While the tourism recovery helped to support the rents in popular tourist destinations (e.g. Orchard Area and Marina Bay Area) in the Central Area (-0.1% QoQ), rents in the Fringe Area fell by 0.5% QoQ in Q4. 

Nonetheless, the rental growth within the Savills basket of malls3 remained stable in Q4, with average monthly rents in Orchard Area rising 1.3% QoQ to S$22.70 psf. For the Suburban Area, the average retail mall passing rent in the Savills basket rose by 0.8% QoQ again to S$14.70 psf in Q4.


Join Real Estate Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!