The city stands alongside Tokyo, Bangkok and Shanghai as one of a handful of Asia Pacific markets featuring prominently in global luxury retail expansion, according to a recent report by property consultancy Savills, as cited by Singapore Business Review.
Singapore also outpaces the world in retail rents growth. It saw luxury retail rents going up 2% on average last year, compared to the global increase of 0.9%.
The global rents growth, recorded across 27 major luxury retail destinations worldwide, was a sharp pullback from the 6.6% expansion recorded in 2024, as macroeconomic uncertainty and shifting travel patterns weighed on occupier demand.
Inside Marina Bay Sands mall in Singapore, Feb. 1, 2024. Photo by Xinhua via AFP |
Savills attributed Singapore’s resilience to tight supply in prime shopping corridors such as Orchard Road and Marina Bay, where constrained availability has funnelled demand into a smaller pool of premium locations, sharpening competition for flagship space and underpinning rental gains.
Sulian Tan-Wijaya, executive director of retail and lifestyle at Savills Singapore, said the city-state continues to attract ultra-high-net-worth individuals and luxury brands due to its reputation as a stable financial hub, as reported by Real Estate Asia.
Singapore also remains a favoured shopping destination for affluent visitors from markets including the U.S. and Germany, further bolstering its dual appeal as a retail and travel hub, Savills noted.
On the global stage, luxury retail strategies are growing more selective as prime space tightens across core markets. Europe led all regions in 2025 with average rental growth of 1.2%, with gains reaching beyond London, Paris and Milan into smaller luxury destinations such as Amsterdam, Vienna and Copenhagen.
Anthony Selwyn, co-head of global retail at Savills, said luxury brands are recalibrating expansion strategies as constrained availability and limited high-quality opportunities become the main drivers of activity.
Marie Hickey, global retail research lead at Savills, added that luxury rental growth had normalized following the strong rebound in 2024, though supply shortages on prime retail streets are expected to continue supporting rental pressure into 2026.
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