RETAIL SALES GROWTH UNDER PRESSURE
Singapore’s retail sales could come under pressure in 2026 following modest growth in 2025, should the Middle East conflict persist or escalate. An extended
period of higher energy and transportation costs would drive inflation and dampen discretionary spending. That said, rising household incomes and resilient labour market conditions should continue to support consumer spending. Singapore’s safe-haven status may also draw wealth management inflows, lending support to retail demand.
RENTAL GROWTH PERSISTS
Singapore’s retail rental market maintained steady momentum in Q1 2026. Orchard prime rents rose 0.4% qoq, supported by sustained luxury demand. New openings by Zimmermann, Jil Sander, Mikimoto, Tudor, IWC and Jaeger LeCoultre strengthened the precinct’s appeal to high-end brands and reinforced its position as Singapore’s core luxury destination.
Other City Areas recorded a 0.6% qoq rise in prime rents, reflecting continuous interest in centrally located malls with balanced footfall and competitive rents.
Suburban prime retail rents increased 0.3% qoq, supported by resilient footfall from residential catchments and essential spending. Other City Areas and Suburban continue to attract retailers seeking accessible and well-positioned units. Demand was driven by new-to-market brands including Kylie Cosmetics at Bugis Junction, MO&Co. at Raffles City, Chick-fil-A at Bugis+ and Lotteria at Jewel Changi Airport. Backfilling remained brisk, highlighted by Casa Vostra taking over Decathlon frontage unit at Tampines Mall, as well as Golden Village and SAS Cineplex replacing Cathay Cineplexes units at Downtown East and Causeway Point respectively.
EXPERIENTIAL RETAIL GAINS EDGE AMID TIGHT SUPPLY
Retail assets that can support experiential concepts are likely to outperform amid competition for well-located space and limited retail supply. Brands are already elevating engagement through formats such as Prada’s in-boutique café at ION Orchard and Lululemon’s wellness-focused flagship at Takashimaya, which offers reformer pilates classes. With annual retail completions averaging only 0.4 msf from 2026 to 2029, half the historical norm, occupiers should act early to secure flexible, well-positioned units and invest in experience-driven formats that build loyalty.
