Prime Orchard’s retail belt and suburban malls retail space has seen a steep rise in prices in last 3 months, after a long decline.

After a consecutive fall for four quarters of around 7.3 per cent, the gross rents of prime first-storey retail space in Orchard and Scotts roads rose slightly by 1 per cent to $39.70 per sq feet per month.

Also the rents in suburban malls were better, which raised 1.5 per cent on quarter to S$33.50 per square foot per month. But rents in the other city areas like Bugis Junction and Great World City are still on fall.

In 2010, the retail rents in Orchard/Scotts Road and the suburban areas are expected to increase by between two and seven per cent. But in the outer sides of the city areas, the new supply will be concentrated in Resorts World Sentosa, Nex and Serangoon Central.

DTZ South-east Asia Research head Ms Chua Chor Hoon said that leasing activity has increased as retailers gain more confidence, along with the economic recovery. "There is strong demand for prime first-storey space, evident from the little availability and speed at which they are being taken up, despite the amount of new space that has come up along Orchard Road," she said.