Singapore ranks fifth among global alpha cities for new luxury store openings: Savills
Among luxury retail industry destinations, Hong Kong kept its number one position as the most expensive retail place on the planet, with prime headline retail rents clocking in at EUR17,132 ($25,549) per sqm per annum. New York’s Madison appeared second at EUR15,559 per sqm per year, increasing from fifth area last year, while London’s Bond Street came in third at EUR15,333 per sqm per annum, increasing from fourth location last year. Singapore’s Orchard Road rated 19th, with prime rentals at EUR1,725 per sqm per annum.
Shanghai and Beijing won and second, respectively, followed by Tokyo. All 3 cities showed y-o-y development in terms of new openings, as did Singapore and Hong Kong, the latter of which ranked ninth. Meanwhile, New york city, Paris and London all saw fewer new high-end shop openings in 2024 compared to the year prior to, that Savills says reflects availability difficulties, rather than a lack of appetite.
Regardless, worldwide brand-new luxury store openings up increased 12% y-o-y in 2024, mainly backed by China, that made up 40% of all brand-new openings worldwide. Excluding China, Apac was still the greatest buildup area in store total terms, accounting for 24% of all brand-new starts around the world.
The report discovered that internationally, prime retail space rentals expanded in 2024, supported by the return of worldwide travel. Of the 21 locations monitor by Savills, over 75% registered saw best headline rentals rising y-o-y or keeping stable in 2024.
Regardless of a greater number of store 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 believes this could restrict the growth and development of deluxe brand names in the city, unless new source comes on stream in the form of brand-new retail developments targeting high-end merchants.
Marie Hickey, head of commercial research study at Savills, explains that whilst the deluxe retail market’s performance secured in 2024, weakened consumer view in the US and China might weigh on growth. She anticipates this to form real estate investment, with the focus over the short term to remain “on the greatest chances”.
Singapore ranked 5th among global alpha urban areas for new deluxe establishment openings up in 2024, according to a research information by Savills. In its Global High-end Retail 2025 report, the property consulting business discovered that the city-state was amongst a number of Asia Pacific (Apac) cities that dominated the positions.
Anthony Selwyn, co-head of global retail at Savills, believes core luxury markets will certainly come to be increasingly affordable. “As a consequence, upward strain on prime leas in these industry will definitely continue, albeit growth will slow, with availability of space ending up being extra constricted,” he includes.
In regards to much smaller destination and portal cities, Apac industry additionally controlled rankings, with Bangkok appearing in top for new openings.
