Singapore ranks fifth among global alpha cities for new luxury store openings: Savills
Singapore placed fifth among international alpha metros for brand-new high-end store startings in 2024, according to a research study report by Savills. In its International Deluxe Retail 2025 report, the realty consulting firm identified that the city-state was amongst a number of Asia Pacific (Apac) urban areas that dominated the rankings.
The report found that around the world, prime retail location leas increased in 2024, upheld by the return of international trip. Of the 21 locations tracked by Savills, over 75% registered saw best headline leas increasing y-o-y or maintaining constant in 2024.
Anthony Selwyn, co-head of international retail at Savills, believes core luxury markets will end up being significantly tough. “Consequently, upward pressure on prime rents in these industry will carry on, albeit development will slow, with availability of space ending up being much more constricted,” he includes.
In regards to scaled-down destination and entrance metropolitan areas, Apac markets additionally dominated positions, with Bangkok appearing in top for new openings.
Amongst deluxe retail locations, Hong Kong kept its top placement as the most costly retail place in the world, with prime heading retail rents clocking in at EUR17,132 ($25,549) per sqm per year. New York’s Madison appeared second at EUR15,559 per sqm per year, climbing from 5th place last year, while London’s Bond Street appeared in 3rd at EUR15,333 per sqm per year, increasing from fourth location in 2024. Singapore’s Orchard Road rated 19th, with prime rentals at EUR1,725 per sqm per annum.
In any case, global new luxurious store openings up climbed 12% y-o-y in 2024, predominantly supported by China, which represented 40% of all new openings globally. Omitting China, Apac was still the biggest growth area in store total terms, making up 24% of all new starts around the world.
Marie Hickey, director of commercial research at Savills, mentions that whilst the high-end retail market’s efficiency stabilised in 2024, minimized consumer view in the US and China could weigh on growth. She expects this to form real estate investment, with the focus over the short-term to remain “on the most ideal chances”.
Shanghai and Beijing won and 2nd, respectively, followed by Tokyo. All 3 cities presented y-o-y development in regards to new launches, as did Singapore and Hong Kong, the latter of that placed 9th. On the other hand, New york city, Paris and London all saw less brand-new high-end outlet openings in 2024 compared to the year prior to, that Savills says reflects availability challenges, rather than an absence of appetite.
In spite of a greater number of shop openings 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 believes this can limit the development and expansion of deluxe brand names in the city, unless new source comes on stream in the form of new retail property developments aim at premium retailers.
