Singapore ranks fifth among global alpha cities for new luxury store openings: Savills
The report discovered that around the world, prime retail location rentals expanded in 2024, upheld by the return of international trip. Of the 21 locations tracked by Savills, around 75% registered saw best headline rents rising y-o-y or maintaining stable in 2024.
In terms of smaller destination and entrance cities, Apac industry also dominated positions, with Bangkok appearing in top for brand-new openings.
Shanghai and Beijing won and 2nd, respectively, followed by Tokyo. All three cities presented y-o-y development in terms of brand-new launches, as did Singapore and Hong Kong, the latter of which placed nine. On the other hand, New york city, Paris and London all saw much less brand-new luxury outlet launchings in 2024 compared to the year before, that Savills says reflects supply difficulties, as opposed to an absence of appetite.
Singapore placed 5th amongst international alpha urban areas for new high-end shop launchings in 2024, according to a research study information by Savills. In its Worldwide Deluxe Retail 2025 report, the property consulting company identified that the city-state was among several Asia Pacific (Apac) cities that dominated the rankings.
Among luxury retail industry destinations, Hong Kong maintained its number one position as one of the most pricey retail haven on the planet, with prime headline retail rents coming at EUR17,132 ($25,549) per sqm per annum. New york city’s Madison appeared in 2nd at EUR15,559 per sqm per year, climbing from 5th place last year, while London’s Bond Street appeared in third at EUR15,333 per sqm per annum, climbing from fourth area last year. Singapore’s Orchard Road rated 19th, with prime rents at EUR1,725 per sqm per annum.
In any case, global brand-new high-end shop openings up climbed 12% y-o-y in 2024, mainly assisted by China, that accounted for 40% of all new openings globally. Leaving Out China, Apac was still the biggest buildup region in store count terms, representing 24% of all new openings globally.
Anthony Selwyn, co-head of global retail at Savills, thinks core deluxe markets will end up being increasingly competitive. “Consequently, higher pressure on prime leas in these markets will definitely proceed, albeit development will slow, with availability of space ending up being extra constrained,” he includes.
Marie Hickey, head of commercial research at Savills, explains that while the deluxe retail market’s performance stabilised in 2024, minimized consumer belief in the United States and China can weigh on growth. She expects this to shape real estate investment, with the focus over the short-term to stay “on the greatest chances”.
Despite a greater amount of establishment openings in Singapore in 2024, available realty for deluxe brands continues to be limited, notes Sulian Tan-Wijaya, executive director for retail and lifestyle at Savills Singapore. Consequently, she thinks this might restrict the development and growth of deluxe brand names in the city, unless new source comes on stream in the form of brand-new retail property developments aim at premium stores.
