SUPPLY: NO NEW SUPPLY IN THE SHORT-TERM, FOCUS ON THE EFFICIENCY
In Q2 2026, total retail stock remained unchanged at approximately 1.21 million sqm, as no new project was completed during the quarter.
Existing retail assets continued to prioritize tenant optimization and operational efficiency, with landlords focusing on enhancing occupancy rather than pursuing expansion.
DEMAND: OCCUPANCY CONTINUED TO IMPROVE
Average occupancy increased to approximately 97.0%, supported by sustained leasing demand across existing retail stock.
Department stores remained virtually fully occupied, reflecting structurally limited supply. Retail podiums and shopping centers also recorded notable occupancy improvements, driven by active leasing activity and continued demand for quality retail space.
Lifestyle and F&B operators continued to anchor leasing demand, particularly within major destination malls and integrated township developments.
AVERAGE ASKING RENT: STABLE GROWTH AMID TIGHTENING VACANCY
Average asking rent reached approximately USD 54.9/sqm/month (+1.5 ppts QoQ; 2.9 ppts YoY), as improving occupancy strengthened landlords' pricing power.
CBD assets continued to command the highest rental premium due to limited availability. Non-CBD locations also maintained steady rental growth, supported by expanding consumer catchments and strong tenant demand.
MARKET OUTLOOK
Future retail supply is expected to remain concentrated in large-scale mixed-use developments and regional shopping centers.
The market is expected to add approximately 286,500 sqm of new supply during 2026-2029F, with the majority concentrated in non-CBD areas, particularly the East and North. The continued expansion of integrated townships is anticipated to further strengthen decentralized retail hubs and support long-term leasing demand.
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