Singapore ranks fifth among global alpha cities for new luxury store openings: Savills
The report saw that around the world, prime retail spot leas increased in 2024, supported by the return of global vacation. Of the 21 places tracked by Savills, around 75% signed up saw best headline rents ascending y-o-y or maintaining stable in 2024.
Marie Hickey, executive of commercial study at Savills, explains that although the luxury retail market’s efficiency stabilised in 2024, decreased consumer sentiment 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 remain “on the best opportunities”.
Anthony Selwyn, co-head of international retail at Savills, believes core high-end market place will certainly come to be increasingly tough. “Therefore, upward strain on prime leas in these markets will definitely continue, albeit expansion will slow, with availability of space coming to be much more constricted,” he adds.
Singapore ranked 5th amongst global alpha urban areas for new high-end establishment openings in 2024, according to a study report by Savills. In its International High-end Retail 2025 report, the real estate consulting firm identified that the city-state was amongst a number of Asia Pacific (Apac) urban areas that dominated the rankings.
In any case, global new high-end store openings up rose 12% y-o-y in 2024, primarily assisted by China, which represented 40% of all brand-new openings worldwide. Excluding China, Apac was still the biggest growth region in shop count terms, making up 24% of all new starts around the world.
In regards to smaller location and entrance metropolitan areas, Apac industry also controlled rankings, with Bangkok coming in top for new openings.
In spite of a higher amount of store 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 believes this can limit the development and development of high-end brand names in the city, unless new source comes on stream in the form of brand-new retail property developments aim at high-end sellers.
Shanghai and Beijing came in first and second, respectively, followed by Tokyo. All 3 cities proved y-o-y growth in with regards to brand-new launches, as did Singapore and Hong Kong, the latter of that ranked 9th. On the other hand, New york city, Paris and London all saw much less new high-end outlet openings in 2024 compared to the year before, which Savills says reflects supply difficulties, instead of a lack of appetite.
Among deluxe retail industry places, Hong Kong preserved its leading placement as the most pricey retail place on the planet, with prime headline retail rents reaching 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 area last year, while London’s Bond Street arrived in third at EUR15,333 per sqm per annum, climbing from 4th area in 2024. Singapore’s Orchard Road rated 19th, with prime hires at EUR1,725 per sqm per annum.
