Chart of the Day: Prime retail rents down 5.4% in Q2

Average prime retail rents in all locations declined in the second quarter.

This chart from Knight Frank shows that island-wide prime retail rents fell 5.4% YoY to an average $28.90 per square-foot per month (psf pm) in Q2.

Average prime retail rents in all locations declined in the second quarter, as many retailers were unable to cope with the effects of the pandemic and exited the market, despite rental waivers granted by the respective landlords, the report said.

This is in line with the government’s retail sales index in June as it fell 25.2% YoY, marking the 17th consecutive MoM decline in the index. Supermarkets and hypermarkets continued to record the largest increase in product sales, with a growth of 41.7% YoY. However, retailers selling discretionary goods witnessed the hardest impact due to the lack of foreign visitors and closure of physical retail stores.