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.