RETAIL SALES UNDER PRESSURE
Singapore retail sales rose 0.6% as of April 2025 YTD, after a 2.1% yoy decline last year, driven by the Computer & Telecommunications Equipment, Recreational Goods, and Cosmetics and Toiletries & Medical Goods. However, domestic consumer spending could slow in coming months due to current economic uncertainty and potentially higher overseas spending due to a strong
Singapore dollar.
RENTS EDGE UP AMID EXPERIENTIAL RETAIL DEMAND
In Q2 2025, prime retail rents rose by 0.6% qoq in Other City Areas and 0.3% in Orchard, supported by recovering tourism, healthy office crowds, and limited prime space availability. Suburban rents also grew 0.2% QOQ, underpinned by steady footfall from nearby residential catchments.
F&B remains the top retail demand driver in H1 2025, accounting for 50% of store openings in prime malls. Lifestyle retailers that focus on a curated experience and offer a wide range of products, have continued to expand in Singapore, often backfilling sizable vacated spaces. Lifestyle retailers drove 18% of openings in H1 2025, up from 13% in 2024. Notable examples include, Muji that has doubled its space at Bugis Junction, and Nitori which is taking over BHG’s former units at Junction 8 and part of Bugis Junction.
SUPPLY CONSTRAINTS UNDERPIN RENTS
Retail rents are expected to remain supported by limited new supply, with islandwide retail additions averaging 0.5 million sf (msf) annually from 2025 to 2029, below the 10-year historic average of 0.8 msf.
Despite above-average new supply in 2025, recent and upcoming completions are seeing healthy take-up. Punggol Coast Mall and Weave at Resorts World Sentosa, completed in H1 2025, offer over 120 and 40 retail, dining and lifestyle options, respectively. Key H2 2025 projects, Link@896’s AEI and Lentor Modern, are also largely leased.
Beyond 2025, no new retail project of over 100,000 sf in NLA are expected to complete until 2028, when Bukit V Mall (174,000 sf) and the redevelopment of Tanglin Shopping Centre (118,000 sf) are slated for completion.
Despite above-average new supply in 2025, recent and upcoming completions are seeing healthy take-up. Punggol Coast Mall and Weave at Resorts World Sentosa, completed in H1 2025, offer over 120 and 40 retail, dining and lifestyle options, respectively. Key H2 2025 projects, Link@896’s AEI and Lentor Modern, are also largely leased.
Beyond 2025, no new retail project of over 100,000 sf in NLA are expected to complete until 2028, when Bukit V Mall (174,000 sf) and the redevelopment of Tanglin Shopping Centre (118,000 sf) are slated for completion.
