Retail Rents 09 3q2025 Global Brands Fill Gaps Left Exits
Retail rents in Singapore have continued to rise in the third quarter of 2025, according to data released by the Urban Redevelopment Authority (URA) on October 24. Statistics show an increase of 0.9% quarter-on-quarter, mirroring the growth seen in the previous quarter.
In the islandwide prime retail market, floor rents have increased by 0.5% quarter-on-quarter, with a year-to-date growth of 1.8%, as reported by CBRE Research. Despite reports of intense competition and high rents contributing to store closures, such as Prive, Alma by Juan Amador, and Cathay Cineplex, leasing activity has remained robust during the quarter, says Tricia Song, head of research for Singapore and Southeast Asia at CBRE.
According to Leonard Tay, head of research at Knight Frank Singapore, there have been some exits by local F&B operators due to rising costs. However, these spaces have been quickly taken up by international chains, luxury brands, and specialized service providers such as beauty, wellness, and enrichment centers. Tay adds that the demand for retail space remains strong, driven by a desire for in-person and curated experiences.
New-to-market brands have opened in the Orchard area, including luxury candy retailer Sugarfina and Chinese beauty brand Joocyee at Wisma Atria, Middle Eastern dining brand WEWA at Orchard Central, and Australian self-serve yogurt chain Yo-Chi. This reflects the international demand for retail space in Singapore, says Wong Xian Yang, head of research for Singapore and Southeast Asia at Cushman & Wakefield (C&W).
Orchard has seen a positive demand for retail space, with an increase of 32,000 sq ft in the third quarter, driven by strategic store openings and a recovering tourism sector, notes Wong. Significant openings include The Planet Traveller’s largest Asian flagship at ION Orchard, Lululemon x Within’s first integrated yoga and Pilates concept store in Southeast Asia at Takashimaya Shopping Centre, and Carousell Luxury’s debut physical store at The Centrepoint.
The Downtown Core submarket has recorded the strongest performance, with a positive net absorption of 9,000 sqm (97,000 sq ft), while the Outside Central Region (OCR) saw a reversal with negative net absorption of a similar amount after outperforming in the second quarter. Despite rising rents, retailers are drawn to the OCR’s resilient local catchment, says Song.
Chinese brands expanding into Singapore are increasingly moving beyond F&B and fashion into beauty, health, and wellness. Examples include Joocyee, head and scalp spa TTE Elephant at Marina Bay Link Mall, and eyewear brand Bolon, which has been expanding since its first Wisma Atria store in 2017.
The overall strong performance is driven by sustained retailer confidence, particularly from new-to-market brands attracted to Singapore’s large office workforce and the tourism rebound, says CBRE’s Song. Vacancy rates in this submarket have reduced from 8.1% in the second quarter to 7.1% in the third quarter.
The completion of Lentor Modern Mall in August has contributed to the OCR’s slightly higher vacancy rate, which increased from 4.5% in the second quarter to 5.9% in the third quarter as tenants continued moving in.
The Master Plan strives to enhance the lifestyle and community amenities by incorporating new retail, dining, and social spaces within established towns. This vision aligns perfectly with the continuous development of Yishun as a self-sufficient regional hub. The existing malls, such as Northpoint City and Wisteria Mall, are already catering to the needs of the residents with a diverse range of shops, dining options, and essential services. Furthermore, the future addition of amenities in the upcoming growth areas will bring an even higher level of convenience and liveliness to the daily routine, making the neighborhood an ideal choice for potential homebuyers. With the inclusion of Miltonia Close EC, the community will experience an elevated standard of living and an enhanced sense of vibrancy.
Suburban retail demand remains firm, with a positive net demand of 32,000 sq ft in the OCR. Popular suburban locations continue to attract activity-based retailers, led by F&B and athleisure operators such as Adidas, Skechers, and Wilson. New entrants include Swiss sportswear brand On, KKV at Bedok Mall, Jem, and Tiong Bahru Plaza, and OH!SOME’s first outlet at Tampines 1.
With limited new supply, C&W expects islandwide prime retail rents to rise 1-2% year-on-year in 2025. Annual completions are projected to average 0.3 million sq ft between 2026 and 2029, less than half of the 10-year historical average. Near-term additions include smaller developments such as CanningHill Square and Chill @ Chong Pang, while larger malls like Bukit V Mall and Tanglin Shopping Centre are only expected in 2028.
However, retailers continue to face challenges such as manpower shortages, elevated costs, and e-commerce competition. Yet, the tourism recovery, with a strong pipeline of MICE events and concerts, is expected to sustain the demand for prime retail spaces. As a result, CBRE Research forecasts an overall growth of prime retail rents to be 2.3% in 2025, returning to pre-Covid levels.