Prime retail rents recorded its first rise after 12 quarters. Prime rents of shopping malls along Orchard Road rose 0.5% q-o-q in Q1 2018. “While the increase was minor, it signals a shift in the needle on the prime retail market,” says Desmond Sim, head of CBRE Research for Singapore and South East Asia.

Retailers have come to terms with labour constraints and pressures from the growth of e-commerce, adds Sim. Slightly improved optimism is supported by the underlying economy and the improving job market. Retailers have also been encouraged by the growth in tourist arrivals and increase in retail sales. However, Sim says, “It is not a picture of health by any means, and challenges remain for fringe or secondary shopping malls.”

However, after three years of rent declines, vacancy in Orchard Road was at a low of 5.7% per cent in 4Q2017, compared to a high of 9.3% 2Q2016. Athleisure, beauty and health and F&B segments continued to drive enquiries for retail space.