RENTS of malls along Orchard Road are almost back to their pre-Asian financial crisis levels, according to a new study by CB Richard Ellis (CBRE).
It showed that retail rents in Singapore's prime shopping district hit an average of $34.40 per sq ft (psf) per month in the April-to-June period.
This is just 2 per cent shy of the property market peak in 1996, when retail rents in Orchard Road reached a monthly average of $35.10 psf, said Ms Mavis Seow, executive director of retail services at CBRE.
Rents in Orchard Road have been rising because of a renewed focus on the area.
A state-initiated rejuvenation has led to a flurry of building development and refurbishment activities along the shopping corridor.
Interest in the Singapore retail scene has also grown, as the economy strengthens and retailers bring in new foreign brands, said Ms Seow.
'The second quarter of this year saw more new brands from Europe, the United States and Australia setting up shop here,' she said.
'Home-grown retailers are also rebranding, with department stores such as Robinsons expanding their fashion range.'
For the whole of this year, Ms Seow expects Orchard Road mall rents to rise between 4 per cent and 7 per cent. This would take them to a 10-year high, surpassing 1996 levels, she added.
The City Hall and Marina Centre belt, another major shopping area, is also benefiting from the upturn.
With several malls in the area being revamped, such as Raffles City and Suntec City, higher rentals for these spaces have pushed up average prime rents.
They rose to $25.90 psf per month - 4.4 per cent higher than a year ago, said CBRE.
