Chart of the Day: Check out why retail rents stay flat over the past 6 years

4Q13 rents held on at $34.6 psf.

According to Savills, Monthly rents for prime space in Orchard Road and suburban malls remained flat at S$34.6 and S$31.1 per sq ft respectively in Q4/2013.

Over the past six years, retail rents tracked by Savills Singapore have been relatively stable.

Here's more from Savills:

We have also observed that as shopping mall rents are at an elevated level, many retailers, especially those in the F&B sector, are moving into shophouses located in or near the fringe of the Central Area.

This is due to the lower rents, the positive agglomeration effect where many neighbouring businesses are in the same trade and the central location.

Some international brands which have moved into conservation shophouses include Lululemon Athletica on Club Street and Joo Chiat Road, The Redundant Shop at Everton Park and Konzepp on Tyrwhitt Road.

Prominent F&B brand, Wolf by Prive Group, has also set up its first store on Club Street.

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