Average monthly Orchard Road retail rents of prime first-storey space increased by 1.5 per cent to $37.80 per square foot (psf) last year.

The increase was generally supported by healthy occupancy rates of above 94 per cent and limited new supply within the subzone, according to an Edmund Tie & Company research report surveying Singapore’s economy in the fourth quarter of last year.

Notable new entrants included fashion eyewear brand Mujosh in Wisma Atria and multi-label concept store NomadX in Plaza Singapura, both opening late last year.
The report found that retail rents generally stabilised last year, although growth was not broad based across Singapore.

According to the data, monthly gross rents of first-storey retail space in suburban areas grew by 1 per cent to $30.80 psf last year. Suburban malls located near transportation nodes performed well, attracting a diverse range of tenants.

Conversely, first-storey gross rents in other city areas remained unchanged at $19.80 psf per month in 2018. Although there were numerous new entrants in these areas, many businesses also closed down during the period – including Emporium Shokuhin in Marina Square, all eight Costa Coffee outlets islandwide and Newstead Technologies, which is under provisional liquidation, with 10 outlets islandwide.

“The retail sector in Singapore has been evolving and adapting with the growing presence of e-commerce, technology, as well as the ever-changing tastes, experiences and preferences of customers,” said the report.

“With improving retail sentiments and steady employment prospects, overall retail rents are expected to remain stable.”