Prime retail rents islandwide up 0.9% in 2Q2024: Knight Frank

The average prime retail leas islandwide grew by 0.9% q-o-q and 3.8% y-o-y to reach $27.40 psf per month (psf pm) in 2Q2024, according to a July Knight Frank retail report. The progress comes in spite of lesser visitor appearances complying with a brief boost due to prominent performances in the very first quarter of the year.

Singapore’s overall retail sales (omitting motor vehicles) fell from $3.5 billion in March to $3.3 billion in April, in tandem with the lesser tourist arrivals. Still, May observed a rebound to $3.6 billion, steered by food and booze expenditures. Retail activity turns up to have readjusted to maintainable status in 2Q2024, following the concert-heavy months in 1Q2024, indicates Ethan Hsu, Knight Frank’s head of retail.

The Myst Condo City Developments Limited

As of 1H2024, prime leas islandwide have actually expanded 1.5%, sustained by the post-pandemic revival and new openings by local and foreign companies. This includes British shoes seller Hunter that opened up its very first outlet in Singapore at Plaza Singapura and French activewear company Hoka’s introduction in Ion Orchard. The F&B sector was joined by startups Ipoh Town, a Malaysian classic coffee bar at Jewel Changi Airport; and Kebuke, a Taiwanese bubble tea chain at Taste Orchard.

Amid this unsure environment, Hsu thinks prime retail rental progress will likely be weaker for the remainder of the year, as rising prices might potentially prevent growth by stores and force incorporation as an alternative. Nevertheless, he thinks rents are still on track to grow in between 2% and 4% for the whole year, the same from his earlier forecasts.

Data from the Audit and Corporate Regulatory Authority reveal that retail and F&B business cessations amounted to 2,631 in 2Q2024, exceeding the 2,502 organizations created during the exact same duration. This is a reverse from the past quarter when there was a net boost of 295 brand-new retail and F&B ventures.

Whilst the retail industry field in Singapore remains appealing to retailers, Hsu notes that inflation and a solid Singapore money have actually solidified development as stores encounter going up operating expense.

Knight Frank defines top retail spots as rental-yielding units of 350 to 1,500 sq ft with the most ideal frontage, online connectivity, footfall and accessibility in a mall, such as ground- or basement-floor retail shopping center units connected to an MRT terminal or bus interchange.

While Taylor Swift and Coldplay concert-goers enhanced site visitors to a peak of close to 1.5 million in March, traveller arrivals stabilised last quarter, with 1.4 million guests recorded in April and 1.3 million visitors documented in May and June specifically.

Prime retail sectors in the city-fringe saw the highest possible rental growth in 2Q2024, rising 1.3% q-o-q to $23.70 psf pm. Prime leas in suburbs climbed 1.2% q-o-q to $26.50 psf pm, adhered to by the Marina Centre, City Hall and Bugis section (up 1% q-o-q to $25.50 psf pm) and the Orchard place (up 0.6% q-o-q to $30.70 psf pm).


error: Content is protected !!