Singapore retail vacancy rate drops to 10-year low of 6.5% in Q3

The Orchard vacancy rate is at its lowest in five years.

The retail islandwide vacancy rate in Singapore has continued to ease marginally from 6.6% in Q2/2024 to 6.5% in Q3/2024, back to the level in Q4/2023 which is the lowest since 2014, according to data from Savills. 

The net take-up was evenly distributed across the Central Region, other than the Downtown Core Planning Area where occupancy remained unchanged. 

Here’s more from Savills:

Although the Orchard vacancy rate in Q3 (7.0%) was still slightly higher than Q1 (6.8%), it is the lowest in the last five years. Notably, it is also near the pre-COVID five-year average of 6.7% from 2015 to 2019. This shows improved overall market sentiment in the Orchard retail scene, albeit amid generally muted retail sales. The vacancy rate in Suburban Area remained stable (4.6%) on the back of full pre-commitment of the newly revamped spaces at Tampines 1 in Q3. 

As the demand for prime retail units remains healthy, rents for such shops rose. This has caused overall retail rents to register a little growth in Q3. The Urban Redevelopment Authority’s (URA) retail rental index in the Central Region inched up by 0.3% QoQ, while Central Area and Fringe Area rose by 0.1% QoQ. 

Savills’ retail rents also rose in Q3, but at a slower pace. The average monthly rent in the Orchard Area was up by 0.5% QoQ to S$23.10 psf. The average retail passing rent in Savills’ basket of retail properties in the Suburban Area fell marginally by 0.1% QoQ to S$14.70 psf in Q3.