RETAIL | Staff Reporter, Singapore

Retail rents in hyper-expensive Singapore are still cheaper than Hong Kong

Leasing costs are at US$308 psf per year.

Brands looking for space in Orchard Road Singapore should brace their wallets as leasing costs in the prime retail district are at US$308 psf annually, according to a report from real estate consultant Cushman & Wakefield.

This grants Singapore the distinction as the 9th most expensive retail location in Asia Pacific and 17th in the world.

“Rents on Orchard Road, the main street in Singapore, have stabilised after softening in 2017 and are expected to bounce back by the end of 2018,” the report’s authors said.

Also read: Singapore malls embrace activity-based tenants

In fact, rents in Singapore’s more suburban locations have edged higher than Orchard Road’s flat performance as residential catchments and the high frequency of shopping trips have pushed leasing costs up.

Nonetheless, retail rents in Singapore are still cheaper than hyper-expensive Causeway Bay in Hong Kong which wrestled the top spot away from Upper Fifth Street in New York as the most expensive retail location in the world. Rents in Causeway Bay are over eight times more than Singapore's leading retail district at US$2,671 psf/year.

Japan’s Ginza district is the second priciest retail location in the APAC with rents at US$1,219 psf/year followed by Australia’s Pitt Street Mall at US$964 psf/year. South Korea’s Myeongdong and China’s Wangfujing round out the top five at US$908psf/year and US$492psf/year respectively.

Photo from Erwin Soo - Plaza Singapura Shopping Mall., CC BY 2.0

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