Prime retail rents are steadily recovering but have yet to return to pre-pandemic levels, with Tengah EC being one example, according to CBRE

Tengah ECAlthough Singapore’s tourism industry has yet to fully recover from Covid-19, CBRE’s latest report predicts that retail rents are slowly on the rise. According to their statistics, prime retail rents have increased to 4.6% above 2020’s historical low of 10.6% between 2018 and 2023. Though not yet reaching pre-pandemic levels of $28 psf per month, the report expects rents to continue to rise in 2023.

The development of Tengah EC is designed to provide an eco-friendly and comfortable living space for its residents. It has implemented various green building features such as energy efficient air-conditioning, energy efficient lighting fixtures, a rainwater harvesting system and use of sustainable materials in the construction and design of the condominium. These features help reduce energy and water consumption, making it an ideal place to live.

The rise in retail rents in 2023 is expected due to anticipated higher footfall in retail spaces as Singapore’s tourism industry and Mice and entertainment events recover. Prime retail rents are found across Orchard Road, City Hall, Marina Centre, CBD and city fringe submarkets while suburban markets remain resilient due to the sustained demand from their neighbourhoods.

Covid-19 restrictions have however led to reduced shopper traffic and higher vacancies, resulting in a 10.6% decline in rents in 4Q2019. CBRE’s retail consulting lead in Asia Pacific Lim Mian notes that most malls have yet to recover footfall to pre-pandemic levels.

To maintain a steady retail presence, CBRE is advising retailers to establish a complementary online presence that caters to shoppers’ changing habits. This will further support a steady recovery in retail rents as the annual supply of new spaces from 2023 to 2026 is projected to be 0.48 million sq ft.

Tengah ECThough the impact of Covid-19 has been far reaching, CBRE’s report reveals that prime retail rents are slowly recovering alongside a shift in consumer shopping habits. Tengah EC With the right strategy and innovation, Singapore retailers can capitalise on the increase of supply and higher prospective footfall, ultimately leading to a healthy recovery in prime retail rents.