Average prime retail rents across Singapore have fallen to their lowest level in nine years.

According to data released by DTZ Southeast Asia, prime first floor rents fell by 3.7 per cent quarter on quarter to about S$30.90 per square foot in the three months to September.

The average monthly rent recorded during the quarter was the lowest since 2006.

DTZ cited weakened consumer sentiment and the much publicised retail sales slowdown as the prime reasons for the decline.

Orchard Rd and Scotts Rd retail rents dropped the least – by 3.5 per cent to $38.45 per sqft, mainly due to steady demand for space by international brands.

Across the city state’s other retail precincts, Marina Centre, City Hall and CBD areas declined the most – by about 4.5 per cent to about $22.10 per sqft.

Suburban rents also fell by 3.5 per cent to about $32.10.

DTZ associate director of research Dr Lee Nai Jia said that with about 4 million sqft of new or refurbished retail space coming onto the market in suburban areas during the next four years, malls in suburban areas will face greater competition.

“Consequently, older suburban malls in particular, will be inclined to reinvent and enhance their shopping experience in order to sustain rental values.”

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