RETAIL SALES TO SEE MODERATE GROWTH
Singapore retail sales rose 0.5% YTD as of July 2025, driven mainly by computer & telecommunications equipment (+14% YTD), cosmetics, toiletries & medical goods (+5% YTD), and recreational products (+4% YTD). While IT products sales has continued to grow strongly in recent years, a large proportion of sales are done online. Despite cautious consumer sentiment, retail sales are expected to see moderate growth for the rest of the year, supported by ongoing government voucher schemes, high-profile events such as the Formula 1 race, and the year-end festive season.
PRIME RETAIL RENTS WITHSTAND TENANT ATTRITION
In Q3 2025, prime retail rents in Orchard and Other City Areas both rose 0.3% qoq. International retail brands continue to seek to gain a foothold in high footfall locations frequented by both locals and tourists. Recent new-to-market entrants include Australian frozen yoghurt brand Yo-Chi’s first overseas outlet in Orchard Central, Chinese beauty brand Joocyee at Wisma Atria, Danish lifestyle store Flying Tiger Copenhagen at Bugis+, and American athletic apparel Alo at The Shoppes at Marina Bay Sands.
Suburban prime malls also saw rents grow 0.3% qoq, supported by resilient non-discretionary spending and low vacancy across all suburban retail spaces, which stood at 6.6% in Q2 2025.
Despite closures among some F&B and cinema operators amid high operating costs and online competition, other activity-based retailers are still expanding, drawn by Singapore’s affluent and diverse consumer base. This year’s openings by brands such as Munchi Pancakes, Chagee, CocoArt and Wan To Play illustrate sustained tenant confidence in well-located malls, highlighting the retail sector’s growth potential even amid challenging conditions.
LIMITED PIPELINE OF SIZABLE NEW PROJECTS
New retail supply islandwide is projected to average just 0.3 million sf annually from 2026 to 2029, less than half the 10-year historic norm, with near-term expected additions modest, including Canninghill Square (87,000 sf) and Parc Point, Tengah Park Neighbourhood Centre (75,000 sf) in 2026, as well as Chill @ Chong Pang (65,000 sf) in 2027. Larger projects exceeding 100,000 sf, namely Bukit V Mall (174,000 sf) and the Tanglin Shopping Centre redevelopment (118,000 sf), will only come onstream in 2028.
