Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1}

Retail MarketBeat Report

Xian Yang Wong • 11/04/2023

Risks Loom Despite China’s Reopening

Singapore total retail sales dropped by 8.2% m-o-m in Jan 2023, as consumer spending slows post holiday season and the “front-loading” of purchases due to GST hike eases. Essential trades such as supermarkets and food & beverage services would see firmer sales performance given the muted economic climate and potential cost-of-living impact. While China’s reopening could offer a boost to retail sales through the influx of Chinese tourists, this may be more apparent in Q2 2023 onwards when more international flights resumes.

Rents Witness Further Recovery

Islandwide prime retail rents continued to trend up by 0.6% q-o-q in Q1 2023, a sixth straight quarter of growth, on the back of rising shopper traffic and tenant sales. Demand for well-located retail spaces has picked up as prime malls were reported to register improved committed occupancy of 98% to 100% as of 31 Dec 2022, driven by larger and well-located malls, based on business updates of major S-Reits.

Suburban prime retail rents increased by 0.4% q-o-q in Q1 2023 as demand persists with steady domestic catchments and perpetual day-to-day shopping. Orchard and Other City Areas prime retail rents grew by 0.7% and 0.6% q-o-q in Q1 2023, albeit they remain below pre-Covid rates. Higher tourist arrivals and a stronger return to office momentum have increased retailer confidence for city centre retail spaces. Orchard prime retail rents could lead growth in 2023, underpinned by a strong tourism recovery and limited new prime retail supply in the pipeline. Singapore international visitor arrivals are expected to double to at least 12 million visitors in 2023 from about 6.3 million visitors last year.

Food & Beverage Players to Spice Up the Market

Food & Beverage (F&B) establishments remains the key retail demand driver, underpinned by a secular trend of dining out in Singapore. While some retailers are recalibrating their store footprint given continued operating challenges, larger F&B operators whom have deeper pockets or new- to-market brands could accelerate their expansion strategy and backfill vacant store space amidst an expected influx of Chinese tourists and improving tourist arrivals. Amongst new-to-market F&B brands that have entered Singapore in Q1 2023 are American baked goods chain Cinnamon which has opened at Raffles City and Japanese one-star Michelin ramen restaurant Nakiryu which debuted at Plaza Singapura. The coffeehouse scene in Singapore is also bustling with Chinese Luckin Coffee’s plans to open several outlets here by end-April, Australian Gloria Jean’s opening of its fourth outlet recently at Republic Plaza after re-entering the local market during Covid, Canadian Tim Hortons’s debut towards end-2023 and Indonesian Kopi Kenangan’s cited plans for Singapore expansion. Another highly anticipated store opening would be global donut chain Mister Doughnut’s first permanent outlet at Junction 8 in May 2023, following its launch of a pop-up last year.

To learn more, download the report.

Marketbeats

Shopping Retail
MarketBeat • Insights

Retail MarketBeat Report

Singapore total retail sales dropped by 8.2% m-o-m in Jan 2023, as consumer spending slows post holiday season and the “front-loading” of purchases due to GST hike eases.
Xian Yang Wong • 11/04/2023
Office Buildings CBD
MarketBeat • Insights

Office MarketBeat Report

In 2023, Singapore’s economy is expected to grow 0.5%-2.5% y-o-y, down from 3.6% y-o-y in 2022.
Xian Yang Wong • 11/04/2023
Warehouse Internal Rack
MarketBeat • Insights

Investment MarketBeat Report

Singapore’s economic growth is expected to slow to about 0.5% to 2.5% yoy in 2023, from 3.6% yoy in 2022.
Xian Yang Wong • 11/04/2023
Warehouse Internal Rack
MarketBeat • Insights

Industrial MarketBeat Report

Singapore’s economic growth is expected to slow to about 0.5% to 2.5% yoy in 2023, from 3.6% yoy in 2022.
Xian Yang Wong • 11/04/2023
APAC Marketbeat
MarketBeat • Insights

Singapore MarketBeat

Cushman & Wakefield MarketBeat reports analyze quarterly economic and commercial real estate activity including supply, demand and pricing trends at the market and submarket levels.
Xian Yang Wong • 11/04/2023
With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Privacy & Cookies.
MORE OPTIONS
AGREE AND CLOSE
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
SAVE SETTINGS