Prime Orchard Road rents are approximately 30 percent higher since a decade ago and peaked at S$36.80 psf per month in 3Q 2008. They have since fallen for the seventh consecutive quarter, declining 3.4 percent quarter-on-quarter to an average of S$31.10 psf per month in 2Q 2010.
Rents were dampened at the trough of the global economic downturn. The recession, which Singapore had slipped into in 4Q 2008, prompted cautious spending that translated into poorer retail performance. Retail sales REGISTERED negative year-on-year growth for 11 months since November 2008, and dipped in 1Q2010 after a brief surge during the Christmas season. Latest available statistics reveal a year-on-year increase in retail sales of 5.6 per cent in May 2010.