Singapore ranks fifth among global alpha cities for new luxury store openings: Savills
Amongst deluxe retail industry destinations, Hong Kong maintained its leading setting as one of the most pricey retail place worldwide, with prime headline retail rents clocking in at EUR17,132 ($25,549) per sqm per year. New York’s Madison appeared in 2nd at EUR15,559 per sqm per annum, increasing from fifth place last year, while London’s Bond Street appeared in third at EUR15,333 per sqm per year, rising from fourth location last year. Singapore’s Orchard Road rated 19th, with prime hires at EUR1,725 per sqm per annum.
In spite of a greater number of shop openings in Singapore in 2024, available real estate for deluxe brands remains limited, notes Sulian Tan-Wijaya, executive director for retail and lifestyle at Savills Singapore. Consequently, she believes this can limit the growth and development of luxury brand names in the city, unless new source comes on stream in the form of new retail developments aim at premium sellers.
Singapore placed fifth amongst international alpha cities for new luxury store launchings in 2024, according to a research study information by Savills. In its Worldwide High-end Retail 2025 report, the real estate consulting company identified that the city-state was amongst several Asia Pacific (Apac) urban areas that dominated the positions.
In regards to scaled-down destination and gateway cities, Apac markets likewise controlled positions, with Bangkok appearing in top for brand-new openings.
In any case, worldwide new luxury shop openings rose 12% y-o-y in 2024, mainly supported by China, that accounted for 40% of all brand-new openings globally. Excluding China, Apac was still the greatest buildup region in shop count terms, accounting for 24% of all brand-new starts worldwide.
Marie Hickey, director of commercial research study at Savills, points out that while the high-end retail market’s performance secured in 2024, weakened consumer sentiment in the US and China can weigh on growth. She expects this to shape real estate investment, with the emphasis over the short term to remain “on the best chances”.
The report found that around the world, prime retail space rentals grew in 2024, supported by the return of global vacation. Of the 21 destinations tracked by Savills, more than 75% registered saw prime headline rentals rising y-o-y or maintaining steady in 2024.
Anthony Selwyn, co-head of global retail at Savills, thinks core deluxe markets will certainly end up being increasingly affordable. “As a consequence, higher pressure on prime leas in these markets will definitely proceed, albeit growth will slow, with availability of space becoming extra constricted,” he includes.
Shanghai and Beijing came in first and 2nd, respectively, followed by Tokyo. All 3 cities proved y-o-y growth in regards to brand-new openings, as did Singapore and Hong Kong, the latter of that ranked ninth. On the other hand, New york city, Paris and London all saw much less new deluxe shop launchings in 2024 compared to the year before, that Savills says reflects availability challenges, as opposed to an absence of appetite.
