Retail rents rebound on spending recovery, expected to rise further in 2024

SINGAPORE retail landlords saw rents rebound in 2023 from their pandemic lows, as tourists returned and domestic spending recovered. 

While inflationary pressures and the higher Goods and Services Tax (GST) may have a short-term impact, they are unlikely to dampen retail spending and push rents downwards, said market watchers. 

Prime retail rents are expected to rise between 1.5 and 4.1 per cent for the whole of 2023, driven by strong performance in the Orchard Road and Downtown sub-markets, they noted.