Prime retail spaces in Orchard Road to sustain rental growth in 2023

EDMUND TIE expects the sector to post a full-year rental growth of 7%-9%.

Prime first-storey retail spaces in Orchard/Scotts Road will be able to maintain their rental growth trajectory in 2023, according to EDMUND TIE.

Last year, the sector witnessed the strongest rental growth of 7.4% for the whole of 2022. 

In 2023, EDMUND TIE expects the market to post full-year rental growth of 7%-9%. For those in other retail submarkets, the experts predict the growth of  3%-6%.

“With the bulk of the supply pipeline slated to come on stream in 2023, including The Woodleigh Mall, and retail shops at One Holland Village, Guoco Midtown and IOI Central, the supply-demand dynamics are expected to be balanced this year,” Lam Chern Woon, head of Research and Consulting at EDMUND TIE, said.

“This is also amid strengthening demand for retail space with brightening recovery prospects for the sector. Nonetheless, we take caution in considerable headwinds in the year ahead, which may reduce consumer spending and cap rental growth,” Lam added.