Chart of the Day: Prime retail rents in Singapore may see muted growth until 2022

They could be hit by high occupancy costs and diminished tourist spending.

This chart from DWS shows that retail rents in Singapore’s prime areas may face a compound annual growth rate (CAGR) of 1.1% from 2018 to 2022. Meanwhile, suburban retail areas may approach a slightly higher CAGR of 1.5%.

Retail rents forecast in Singapore are still above Hong Kong’s predicted overall CAGR from 2018 to 2022 of 1%. Meanwhile, Beijing core retail rents are predicted to perform a little higher than Singapore’s suburban retail case by 1ppt from 2018 to 2022.

DWS thinks that near-term rental growth will be minimal in Singapore, Hong Kong and Kuala Lumpur as they will be hit by high occupancy costs and diminished tourist spending.

According to the study, Shanghai prime retail rents are predicted to have a CAGR rate of of 2.3% which is the highest, followed by Sydney (2.2%), and Guangzhou prime and Melbourn (2.1%).