Rents in prime floor space in retail to rise 2.5%-3.5%: report

This is due to tightening vacancy rates and revival of the economy.

With health occupier demand, tight vacancy rates and tight supply, the retail property market is seen to recover in the next five years.

According to JLL’s Singapore retail property market outlook from 2022 to 2026, rents of prime floor space in retail assets will move up by 2.5% - 3.5% per annum.

This is on the back of rising occupiers in retail malls in good locations given the economic revival and easing of border restrictions.

“Singapore’s commitment to reopening the economy, alongside the nation’s pandemic preparedness, will continue to lift retailer confidence. Consumption growth, underpinned by rising wages and a recovery in tourism, should encourage business expansion and support healthy occupier demand in the medium-term,” said JLL.

Supply pipeline of retail space will also remain tight until 2026, at less than 1% of existing stock yearly.