HIGHER inflation, manpower shortages and recession concerns will continue to weigh on the retail market, but the sector appears to be on its way to recovery, supported by a tight supply pipeline.

Rents of retail spaces in Singapore’s central region fell for the third quarter in a row this year. Q3 2022 rents slipped 0.4 per cent quarter on quarter, marginally better than Q2’s 0.5 per cent decline, according to figures from the Urban Redevelopment Authority (URA) released on Friday (Oct 28).

Prices of retail space in the central region also fell by 3.2 per cent in Q3 after it dipped 1.2 per cent in Q2.