Prime retail rents to rise between 2%-4% in 2022

The expected growth is on the back of easing of restrictions.

Prime retail rents are expected to increase between 2% to 4% for the entire year on the back of the new optimism brought by the easing of restrictions, Knight Frank said in a report.

According to the analyst, "dark clouds are finally receding" for the retail sector and that it has reached a "turning point." 

"Vaccinated Travel Framework allowing international travelers to enter Singapore without quarantine requirements is set to increase activity at all retail destinations, especially in the Central Area," Knight Frank said.

"Nightlife players also have reason to be optimistic as these establishments will be permitted to fully open their doors for business starting 19 April," the analyst added.

While the outlook for the entire year was positive, the year started on a negative as the retail sales index saw a decline for the first time in 12 months, narrowing slightly by 2.4% YoY in February 2022.