Singapore ranks fifth among global alpha cities for new luxury store openings: Savills
Anthony Selwyn, co-head of global retail at Savills, believes core deluxe markets will end up being progressively tough. “Therefore, upward pressure on prime rents in these markets will definitely carry on, albeit expansion will slow, with availability of space becoming more constricted,” he includes.
Marie Hickey, director of commercial research study at Savills, points out that whilst the high-end retail market’s efficiency secured in 2024, decreased consumer sentiment in the United States and China could weigh on growth. She anticipates this to form real estate investment, with the emphasis over the short term to remain “on the best chances”.
Regardless, worldwide brand-new luxurious shop openings increased 12% y-o-y in 2024, primarily assisted by China, which accounted for 40% of all new openings worldwide. Omitting China, Apac was still the greatest buildup area in establishment count terms, accounting for 24% of all new starts globally.
Regardless of a higher amount of shop startings in Singapore in 2024, available real estate for luxury 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 development of luxury brand names in the city, unless new supply comes on flow in the form of brand-new retail property developments aim at premium sellers.
In terms of much smaller location and portal cities, Apac industry likewise dominated positions, with Bangkok coming in top for new openings.
Shanghai and Beijing came in first and 2nd, respectively, followed by Tokyo. All 3 cities showed y-o-y growth in regards to brand-new launches, as did Singapore and Hong Kong, the latter of that rated ninth. Meanwhile, New York, Paris and London all saw fewer new deluxe outlet launchings in 2024 compared to the year before, which Savills says reflects supply challenges, as opposed to a lack of appetite.
The report saw that worldwide, prime retail location leas grew in 2024, supported by the return of global vacation. Of the 21 locations monitor by Savills, more than 75% registered saw prime headline rents rising y-o-y or maintaining consistent in 2024.
Among high-end retail industry destinations, Hong Kong retained its number one position as one of the most expensive retail place on the planet, with prime headline retail rentals coming at EUR17,132 ($25,549) per sqm per annum. New york city’s Madison appeared 2nd at EUR15,559 per sqm per annum, climbing from fifth place last year, while London’s Bond Street appeared in third at EUR15,333 per sqm per annum, climbing from 4th location last year. Singapore’s Orchard Road ranked 19th, with prime rentals at EUR1,725 per sqm per annum.
Singapore placed fifth amongst global alpha cities for new luxury store openings up in 2024, according to a study report by Savills. In its Global High-end Retail 2025 report, the realty consulting firm found that the city-state was among numerous Asia Pacific (Apac) urban areas that prevailed the positions.
