RETAIL SALES GROWTH REMAINS UNEVEN
Singapore's retail market remained resilient in Q3 2026, with retail sales rising 1.9% YTD as atJuly 2026. However, performance remained uneven across retail categories, with computer & telecommunications equipment (+9.2%) and watches & jewellery(+7.2%) outperforming, while department stores posted the steepest decline (-3.7%). The uneven performance across retail categories reflects changing consumer preferences and spending patterns. In response to evolving shopper demand, retailers and landlords continue to adapt through refreshed tenant mixes, differentiated concepts and more flexible retail formats
RESILIENT DEMAND SUPPORTS PRIME RENTS
Other City Areas prime retail rents outperformed with 0.7% qoqgrowth in Q3 2026, supported by a lower rental base relative to Orchard and a diverse catchment comprising office workers, commuters, tourists and local shoppers. While prime rents in Orchard and suburban locations both rose 0.3% qoqin Q3 2026. Orchard continued to benefit from limited availability of prime retail space in leading malls. Suburban retail also remained relatively resilient, supported by stable residential catchments and active tenant remixing. This was reflected in the successful backfilling of former prime and anchor retail space at Tampines Mall by retailers including Casa Vostra, Paris Baguette, Sephora and Dior Beauty. The operating environment however remained challenging, with retail and F&B business closures continuing alongside new business formation. Nevertheless, net business formation in the retail and F&B sectors remained positive at 992 entities as atAugust 2026, according to ACRA, indicating continued business creation despite ongoing market churn.
SUPPLY CONSTRAINTS UNDERPIN FUTURE GROWTH
Prime rents are expected to remain on an upward trajectory across all submarkets, supported by a relatively constrained pipeline. Retail completions are projected to average 0.6 msfannually between 2027 and 2031, below the 0.7 msfannual average delivered between 2017 and 2026. Future supply will be dominated by integrated mixed-use developments (~90%) and redevelopment projects (~79%), with 54% of upcoming completions concentrated in suburban locations, 42% in Other City Areas and only 4% in Orchard Road. The limited pipeline should help keep overall supply pressures manageable and support rental resilience
