Singapore Prime Retail Rents Rise 2 Percent Outpacing Global Average

Savills’ 2026 global luxury retail outlook report found that average prime retail rents across 27 core cities worldwide rose just 0.9 per cent in 2025, a marked slowdown from the 6.6 per cent growth recorded in 2024. The Asia-Pacific region performed even weaker, with prime retail rents dipping 0.2 per cent over the same period.

Against this backdrop of cooling luxury consumption and macroeconomic uncertainty, Singapore’s prime retail rents still managed to gain 2 per cent, reaching S$3,914 per square metre per year. The report attributed the relatively strong performance mainly to limited retail space in core shopping areas along Orchard Road and Marina Bay, where sustained demand continues to support competition for quality spaces.

Savills executive director Chen Shubin noted that Singapore is broadly viewed as Asia’s most stable and mature high-net-worth individual wealth destination. Despite robust rent growth, Singapore remains an important market for international luxury brand positioning and expansion.

London’s Bond Street topped the global rankings at S$28,650 per square metre per year, followed by Hong Kong’s Tsim Sha Tsui at S$24,078 and Milan’s Via Montenapoleone at S$23,840. Other top locations include Los Angeles’ Rodeo Drive at S$19,625, Paris’ Champs-Elysees at S$17,880, New York’s Madison Avenue at S$15,644, and Tokyo’s Ginza at S$12,824. Singapore’s Orchard Road ranked 24th at S$3,914, roughly one-seventh of Bond Street rents.

Europe emerged as the standout performer in 2025, with average prime retail rents rising 1.2 per cent. Growth was not confined to traditional luxury streets in London, Paris and Milan; smaller European cities such as Amsterdam, Dublin and Vienna also recorded rent increases.

Luxury brands’ confidence in the China market has improved but not fully recovered. The report noted that while brands are not entirely abandoning China, the recovery remains incomplete. Meanwhile, global new luxury store openings continued to slow in 2025, with new openings hitting their lowest level since 2020.

Savills senior research director Marie Hickey observed that after a strong rebound in 2024, the luxury retail rent growth slowdown in 2025 reflects the market entering a phase of further normalisation and adjusting to a sustainable pace. From a city distribution perspective, Singapore’s luxury ranking rose to 10th globally, underscoring the city-state’s growing status as a leading international tourism and retail gateway since 2020.

Lianhe Zaobao, 28 May 2026: “Local prime retail rents rise 2%, above global average” by Li Yaning