Prime retail rents crashed to nine-year low in Q3

Blame it on low sales.

The average prime first-storey retail rent in Singapore fell to $30.90 per square foot in the third quarter, according to a report by DTZ. This marks a decline of 3.7% quarter-on-quarter and a contraction of 4.5% year-on-year, and is also the lowest average monthly rent recorded since the first quarter of 2006.

Among the regions, average prime first-storey rents in the other city areas declined the most by 4.5% q-o-q to about $22.10 per sq ft in Q3.

Meanwhile, the average rent in the suburban areas declined by a smaller percentage of 3.5% q-o-q to $32.10 per sq ft, because of its larger primary catchment than that for other city areas.

Over in Orchard and Scotts Road, average prime first-storey rent also fell by 3.5% q-o-q to $38.45 per sq ft during the quarter.

“Lower retail spending in malls has placed downward pressure on islandwide rents. As opposed to other city areas, rent in Orchard/ Scotts Road was more resilient because it remains highly sought after by many international brands,” DTZ said.