2023-10-25-莱坊-Singapore_Retail_Market_Update_Q3_2023_2页_915kb

Singapore Retail Market Analysis Q3 2023 Summary

Visitor Arrivals

• First nine months of 2023 saw 10.1 million visitor arrivals, with Q3 equivalent to 3.9 million arrivals.
• Notable growth of 72.5% year-on-year for Q3, driven by events like National Day Parade and Formula One Singapore Grand Prix.
• Consistent positive momentum supports retail recovery.

Retail Sales Performance

• Retail spending gained momentum in July and August, fueled by visitor arrivals and public events.
• Year-on-year growth for retail sales reached 4.3% in Q3, forming 14.2% of all sales.
• Events like concerts and conferences supported visitor inflows and retail spillover.

Rental Revenues

• Average gross rent for prime retail spaces rose 1.1% q-o-q to S$26.70 psf pm.
• Orchard Road prime retail rents increased by 0.9% to S$30.00 psf pm, while suburban prime retail rents grew by 2.1% to S$25.90 psf pm.
• Overall prime rental prices staying stable but adapting to market dynamics.

Market Growth

• Foreign and local brands expanding operations, with some going overseas.
• Integration of online and offline shopping channels enhanced through digital marketing.

Future Outlook

• Retail sector expected to continue strengthening in 2023 and early 2024.
• Potential 3% to 5% increase in prime retail rents for 2023.