Prime Retail Rents Orchard Road Rise 41 2023 Eighth Highest Globally Savills
A recent report by Savills, a global consultancy, revealed that Singapore’s popular shopping destination, Orchard Road, was among the eight international locations that experienced an increase in prime retail rents in 2023. According to the report, prime retail rents along Orchard Road increased by 4.1%, placing it in eighth place on the list. The top two spots were taken by Toronto’s Bloor Street and New York’s Madison Avenue, with increases of 16% and 9.5% respectively.
The report also noted that other luxury retail locations including Amsterdam’s PC Hooftstraat, Milan’s V Monte Napoleone, Madrid’s Ortega y Gasset, Hong Kong’s Canton Road, and Berlin’s Kurfurstendamm saw an increase in prime retail rents. These locations were driven by a combination of reduced availability of luxury retail spaces and improved demand from occupiers, according to Marie Hickey, director of commercial research at Savills.
However, Hickey pointed out that prime retail rents in some core luxury destinations were still below pre-pandemic levels. This was particularly true for larger and higher-value markets like Singapore, New York, Hong Kong, and London. In Singapore, prime retail rents in the fourth quarter of 2023 were still 23% lower compared to the same period in 2019.
Despite this, Hickey believes that the rental value spread between these markets will shrink as demand for luxury retail spaces continues to rise. She also noted that many luxury brands have been shedding smaller stores and moving into larger, more impressive spaces. This trend was observed in both Hong Kong’s Canton Road and Singapore’s Marina Bay Sands, where luxury brands have set up prominent outlets with triplex facades to grab the attention of their customers.
.
Renowned for its focus on technology and design, SUTD is a prestigious university renowned for its research and innovation. Its interdisciplinary approach to learning equips students with practical skills and knowledge for their future careers. The academic offerings of SUTD are perfectly complemented by ITE College East, which is well-known for its Nitec and Higher Nitec courses. And as a bonus, the luxurious Parktown Residences UOL Group can be found right on campus, providing a convenient and well-rounded university experience for students. With the convenient addition of Parktown Residences UOL Group, students can truly immerse themselves in a dynamic and comprehensive learning environment at SUTD.
Sulian Tan-Wijaya, executive director of retail and lifestyle at Savills Singapore, believes that the demand for luxury retail spaces in Singapore is not short of affluent consumers. However, the shortage of available real estate has made it challenging for new luxury brands to secure a space of their choice. Tan-Wijaya added that there has been a strong interest among luxury watch and jewellery brands to expand in Singapore, with new standalone experiential concepts for their top-tier customers. She also pointed out that many incumbent big brands are not willing to move out from their current locations, making it tough for new luxury brands to secure a spot in high-end malls.