STABLE RETAIL SALES
Singapore’s retail sales in 2026 is poised to see moderate growth, supported by ongoing recovering tourism, a stable labour market and falling interest rates. Though households have become more conscious in their spending, balancing higher living costs with a focus on value and experiences, which will limit discretionary demand. Retail sales rose 0.8% YTD as of November 2025, led by computer & telecommunications equipment (+10.2%) and recreational goods (+8.2%), amidst high online penetration for IT products and sustained consumers’ demand for leisure and experiential retail.
RENTAL GROWTH SLOWS BUT UNDERLYING DEMAND PERSISTS
Overall prime retail rental growth stayed positive but softened in 2025, reflecting retailers’ cautious stance amid economic uncertainties, high costs and online competition. Other City Areas and Orchard prime retail rents rose 2.1% and 1.6% yoy, supported by a limited supply of new retail space, but below 2.9% and 3.0% in 2024. Suburban rents edged up 0.9% yoy, slower than 2.3% growth in 2024, though still underpinned by strong residential catchments and resilient essential spending.
Despite several high-profile retailer closures in 2025, the Singapore retail market continues to see healthy activity. Singapore continues to attract new-to-market retailers, drawn by Singapore’s cosmopolitan consumer base, diverse demand profile and the city’s position as a regional launchpad. Several Chinese brands have expanded rapidly. For example, in 2025, Chinese lifestyle brand KKV opened at least five outlets, while Chinese tea brand Chagee expanded by at least 15 outlets over the same period.
