Singapore prime retail rents to grow by up to 2.5% in 2024

Firm occupier demand is expected to drive vacancy rates lower for the rest of the year.

According to JLL analysts, Singapore’s retail property market should continue to attract new brands and encourage strategic expansion from existing retailers in Singapore due to sustained domestic consumption amid a tight labour market and tourism growth.

Here’s more from JLL:

The pipeline of business travel and meetings, incentive travel, conventions and exhibitions (BTMICE), along with improved flight connectivity and capacity, and the mutual 30-day visa exemption arrangement between Singapore and China, should further boost the tourism recovery on both the business and leisure fronts.

Singapore's role as a strategic gateway, where new retailers can build a strong presence and establish an international reputation before expanding in the region, also drives occupier demand for retail space.

Based on JLL Research’s retail asset portfolio, the moderated supply pipeline and firm occupier demand are expected to drive vacancy rates lower for the rest of 2024. Coupled with landlords’ proactive asset management, this is expected to extend the rent growth of quality retail assets from 1H24 to 2H24. We maintain our view that rents for prime floor space should grow by 1.5 – 2.5% y-o-y in 2024. 

With market liquidity and a scarcity of tradeable quality retail assets, rising rents should extend the price growth of prime floor space in quality retail assets from 1H24 to 2H24 and, hence, full-year 2024.