Retail market to see continued recovery in 2H23

Prime retail rents in the Islandwide market rose 3.2% YoY in 2Q23.

Tourism recovery and below-historical-average new retail supply will help lift retail rents in Singapore for the rest of the year, CBRE Research said.

In 2Q23, prime retail rents for all submarkets rose, climbing 3.2% YoY (0.8% QoQ) in the Islandwide market, 2.9% YoY (1.0% QoQ) for Orchard Road, and 3.1% YoY (0.5% QoQ) for Suburban.

Leaving activity in 2Q was accentuated by “another slew of new mall openings such as The Woodleigh Mall and Komo Shoppers,” said CBRE.

“Demand continued to be primarily driven by F&B operators, especially cafes.”

“Fashion and beauty and health stores, including Massimo Dutti, Sift & Pick, and Rituals also increased their presence in the quarter,” the expert added.