Singapore ranks fifth among global alpha cities for new luxury store openings: Savills
The report saw that internationally, prime retail location rentals expanded in 2024, backed by the return of global vacation. Of the 21 destinations monitor by Savills, over 75% signed up saw best headline rents ascending y-o-y or maintaining steady in 2024.
Shanghai and Beijing came in first and 2nd, respectively, followed by Tokyo. All three cities proved y-o-y growth in with regards to brand-new openings, as did Singapore and Hong Kong, the latter of that ranked ninth. On the other hand, New york city, Paris and London all saw fewer brand-new high-end shop openings in 2024 compared to the year before, that Savills says reflects availability difficulties, as opposed to a lack of appetite.
Despite a greater amount of establishment openings in Singapore in 2024, available property for luxury brands continues to be limited, notes Sulian Tan-Wijaya, executive director for retail and lifestyle at Savills Singapore. Consequently, she believes this might restrict the development and expansion of high-end brand names in the city, unless new source comes on flow in the form of new retail developments targeting high-end retailers.
Amongst luxury retail industry places, Hong Kong preserved its top position as one of the most pricey retail haven worldwide, with prime heading retail rentals clocking in at EUR17,132 ($25,549) per sqm per annum. New York’s Madison came in second at EUR15,559 per sqm per year, rising from fifth location last year, while London’s Bond Street appeared in 3rd at EUR15,333 per sqm per annum, increasing from fourth area last year. Singapore’s Orchard Road rated 19th, with prime hires at EUR1,725 per sqm per annum.
Marie Hickey, head of commercial research study at Savills, explains that while the high-end 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 stay “on the greatest possibilities”.
Anthony Selwyn, co-head of worldwide retail at Savills, believes core deluxe market place will end up being progressively tough. “Consequently, upward strain on prime rents in these industry will proceed, albeit development will slow, with availability of space ending up being a lot more constrained,” he includes.
In terms of scaled-down destination and gateway metropolitan areas, Apac industry also controlled positions, with Bangkok coming in top for new openings.
Singapore rated 5th among international alpha cities for brand-new high-end establishment launchings in 2024, according to a research information by Savills. In its Worldwide Luxury Retail 2025 article, the realty consulting company identified that the city-state was among numerous Asia Pacific (Apac) urban areas that prevailed the positions.
Regardless, global brand-new high-end store openings rose 12% y-o-y in 2024, primarily supported by China, that made up 40% of all new openings around the world. Excluding China, Apac was still the greatest growth area in establishment count terms, representing 24% of all new starts worldwide.
