Singapore ranks fifth among global alpha cities for new luxury store openings: Savills
Amongst deluxe retail industry locations, Hong Kong kept its top placement as the most expensive retail haven on the planet, with prime heading retail rents reaching at EUR17,132 ($25,549) per sqm per annum. New york city’s Madison appeared in 2nd at EUR15,559 per sqm per year, rising from fifth area last year, while London’s Bond Street came in third at EUR15,333 per sqm per year, climbing from 4th place in 2024. Singapore’s Orchard Road rated 19th, with prime rentals at EUR1,725 per sqm per annum.
Despite a higher number of establishment startings in Singapore in 2024, available realty for deluxe brands remains limited, notes Sulian Tan-Wijaya, executive director for retail and lifestyle at Savills Singapore. Consequently, she believes this can restrict the development and growth of high-end brand names in the city, unless new supply comes on flow in the form of new retail developments targeting high-end merchants.
In terms of much smaller location and portal metropolitan areas, Apac markets also dominated positions, with Bangkok coming in top for brand-new openings.
Anthony Selwyn, co-head of international retail at Savills, thinks core high-end market place will certainly end up being progressively tough. “As a consequence, higher pressure on prime leas in these industry will continue, albeit growth will slow, with availability of space becoming extra constricted,” he includes.
Marie Hickey, director of commercial research study at Savills, points out that although the luxury retail market’s performance stabilised in 2024, minimized consumer belief in the US and China can weigh on growth. She anticipates this to form real estate investment, with the emphasis over the short-term to stay “on the most ideal opportunities”.
In any case, international new high-end store openings up climbed 12% y-o-y in 2024, primarily supported by China, which accounted for 40% of all new openings around the world. Excluding China, Apac was still the greatest growth area in establishment total terms, representing 24% of all new starts globally.
Singapore rated 5th amongst global alpha metros for brand-new high-end store launchings in 2024, according to a research information by Savills. In its Worldwide Luxury Retail 2025 article, the real estate consulting business identified that the city-state was among several Asia Pacific (Apac) urban areas that prevailed the positions.
The report discovered that globally, prime retail spot leas increased in 2024, backed by the return of international vacation. Of the 21 destinations monitor by Savills, over 75% registered saw prime headline rentals ascending y-o-y or maintaining steady in 2024.
Shanghai and Beijing won and 2nd, respectively, followed by Tokyo. All three cities showed y-o-y development in terms of brand-new launches, as did Singapore and Hong Kong, the latter of that placed nine. Meanwhile, New york city, Paris and London all saw less new luxury store openings in 2024 compared to the year before, that Savills says reflects availability challenges, as opposed to an absence of appetite.
