Singapore ranks fifth among global alpha cities for new luxury store openings: Savills
Marie Hickey, executive of commercial research at Savills, mentions that while the deluxe retail market’s performance stabilised in 2024, weakened consumer sentiment in the United States and China could weigh on growth. She anticipates this to shape real estate investment, with the emphasis over the short-term to remain “on the most ideal chances”.
Amongst deluxe retail industry locations, Hong Kong kept its leading position as one of the most pricey retail haven on the planet, with prime heading retail rents coming at EUR17,132 ($25,549) per sqm per annum. New York’s Madison came in second at EUR15,559 per sqm per year, climbing from fifth area last year, while London’s Bond Street came in 3rd at EUR15,333 per sqm per year, climbing from fourth location in 2024. Singapore’s Orchard Road placed 19th, with prime hires at EUR1,725 per sqm per annum.
Shanghai and Beijing came in first and second, respectively, followed by Tokyo. All 3 cities presented y-o-y growth in regards to new launches, as did Singapore and Hong Kong, the latter of that placed 9th. Meanwhile, New york city, Paris and London all saw much less brand-new high-end outlet launchings in 2024 compared to the year prior to, which Savills says reflects availability challenges, instead of an absence of appetite.
Regardless, worldwide new luxury outlet openings climbed 12% y-o-y in 2024, primarily supported by China, that represented 40% of all new openings globally. Excluding China, Apac was still the biggest buildup region in shop count terms, making up 24% of all new openings globally.
Singapore rated fifth among international alpha urban areas for brand-new deluxe shop openings in 2024, according to a research study report by Savills. In its Global Luxury Retail 2025 report, the realty consulting firm found that the city-state was amongst a number of Asia Pacific (Apac) urban areas that prevailed the rankings.
In spite of a greater amount of store startings in Singapore in 2024, available property for high-end brands continues to be limited, notes Sulian Tan-Wijaya, executive director for retail and lifestyle at Savills Singapore. Consequently, she believes this could limit the development and development of luxury brands in the city, unless new supply comes on stream in the form of brand-new retail property developments targeting premium sellers.
Anthony Selwyn, co-head of worldwide retail at Savills, thinks core deluxe market place will end up being increasingly affordable. “As a consequence, higher pressure on prime rents in these industry will proceed, albeit growth will slow, with availability of space coming to be more constrained,” he adds.
The report found that internationally, prime retail spot rentals grew in 2024, supported by the return of international travel. Of the 21 destinations monitor by Savills, more than 75% signed up saw prime headline leas ascending y-o-y or holding constant in 2024.
In terms of scaled-down location and portal metropolitan areas, Apac industry additionally dominated rankings, with Bangkok appearing in top for new openings.
