by Mabel TanA fall in rental rates across prime shopping centres in Singapore has prompted international consumer brands to look towards setting up brick and mortar stores in Singapore.In Q1 2012, rentals for prime retail spaces dropped to US$455 (S$574) psf per year from US$470 (S$591.87) in the previous year. This implies prime retail rents in Singapore are the third-lowest among the 20 key markets globally, according to a recent CBRE report. On the other end of the scale, Hong Kong has been ranked the most expensive place to open a shop, with average prime retail rents of US$3,864 (S$4,866) psf per year. This marks an increase of over 200 percent from the US$1,697 (S$2137) psf recorded in Q1 2011. In China, prime retail rents in three major retail cities - Shanghai, Guangzhou and Beijing - were also significantly higher than Singapore's. With the disparity in rental prices, it came as no surprise that a number of renowned brands have decided to concentrate their business in the city-state, said property watchers. Letty Lee, Director of Retail Services at CBRE, added that high-end international labels are launching new outlets in Singapore, branding them as their flagship stores in the Southeast Asian region. Others are also looking to open their first stand-alone store here. Popular brands include Shoemaker UGG and Dr. Hauschka Skin Care.
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