Retail Rents in Orchard Road Poised for Growth in 2024 Amid Tourism Rebound

SINGAPORE — According to property consultancy Edmund Tie, Orchard Road retail rents are set to grow significantly this year, driven by a tourism sector rebound. Prime first-floor retail spaces on Orchard and Scotts Roads are expected to see rental increases of 3% to 5%, as reported by Singapore Business Review.

This growth is anticipated alongside a tighter supply chain, with moderate increases projected across other city center areas at 1% to 2%. Fringe and suburban regions could experience rental growth of up to 3% as well.

In 2023, the retail sector’s net absorption dipped to 805,000 sq ft, down from 990,000 sq ft in 2022, reflecting a consumer shift towards fringe and suburban areas. Nevertheless, average retail occupancy in Orchard and Scotts Road rose slightly to 91%, while the Other City Area reached 92.1% and suburban occupancy remained steady at 94.4%.

Edmund Tie highlighted that some brands are adapting to shifting market dynamics, with new entrants establishing themselves amid these changes. An unexpected December boost in visitor arrivals—13.6 million—also contributed to maintaining high occupancy and rental rates, especially in prime areas.