Singapore ranks fifth among global alpha cities for new luxury store openings: Savills
Amongst luxury retail places, Hong Kong retained its number one position as one of the most pricey retail place on the planet, with prime heading retail rents coming at EUR17,132 ($25,549) per sqm per year. New york city’s Madison appeared in 2nd at EUR15,559 per sqm per year, climbing from fifth area last year, while London’s Bond Street arrived in third at EUR15,333 per sqm per year, rising from fourth area last year. Singapore’s Orchard Road ranked 19th, with prime hires at EUR1,725 per sqm per annum.
Marie Hickey, head of commercial research at Savills, explains that whilst the high-end retail market’s performance secured in 2024, decreased consumer view in the US and China could weigh on growth. She anticipates this to shape real estate investment, with the focus over the short-term to remain “on the most ideal possibilities”.
In any case, worldwide brand-new high-end store openings up climbed 12% y-o-y in 2024, predominantly supported by China, that represented 40% of all new openings globally. Omitting China, Apac was still the biggest growth area in shop total terms, accounting for 24% of all brand-new openings globally.
Shanghai and Beijing came in first and 2nd, respectively, followed by Tokyo. All 3 cities presented y-o-y development in with regards to brand-new launches, as did Singapore and Hong Kong, the latter of that rated nine. On the other hand, New york city, Paris and London all saw fewer new luxury outlet openings in 2024 compared to the year before, that Savills says reflects supply difficulties, rather than a lack of appetite.
Regardless of a higher number of establishment openings in Singapore in 2024, available property for high-end brands remains limited, notes Sulian Tan-Wijaya, executive director for retail and lifestyle at Savills Singapore. Consequently, she thinks this can limit the development and growth of high-end brand names in the city, unless new supply comes on stream in the form of brand-new retail property developments targeting premium stores.
In terms of much smaller destination and entrance cities, Apac industry likewise controlled rankings, with Bangkok appearing in top for brand-new openings.
The report discovered that worldwide, prime retail location leas increased in 2024, upheld by the return of global vacation. Of the 21 places tracked by Savills, around 75% registered saw prime headline rents increasing y-o-y or keeping stable in 2024.
Singapore rated fifth among international alpha urban areas for new deluxe establishment openings up in 2024, according to a research information by Savills. In its Worldwide Deluxe Retail 2025 report, the property consulting firm found that the city-state was amongst numerous Asia Pacific (Apac) cities that prevailed the positions.
Anthony Selwyn, co-head of global retail at Savills, believes core luxury markets will come to be increasingly tough. “Consequently, upward pressure on prime leas in these industry will definitely carry on, albeit expansion will slow, with availability of space ending up being extra constricted,” he adds.
