Singapore retail rents and inflation moving in tandem may put retailers in a bind

SOME retail businesses, including those selling recreational goods and furniture, are likely to be hit harder by rising rents coupled with inflationary pressures in Singapore, an analysis by the Institute of Real Estate and Urban Studies (IREUS) suggests.

On the other hand, retailers of items such as food, toiletries and computers may be better able to weather higher rents.

Historical data shows that core inflation, which excludes accommodation and private transport costs, tends to move in tandem with overall rents of private-sector shop spaces in Singapore’s Central Region on a quarterly basis.