Is Singapore on the path to recapture its status as a regional retail hub?

Data from Savills showed that Orchard Road rents may grow 2%-3% in 2023.

With the return of tourism and new-to-market brands entering Singapore, experts believe that the retail market is bound for growth and continued recovery this year.

“Singapore is increasingly re-capturing its status as a regional retail hub,” said Sulian Tan-Wijaya, executive director of Savills Retail & Lifestyle.

Amongst international brands which entered Singapore include Kave Home, a renowned Spanish furniture manufacturer, which opened its first Southeast Asian flagship store at Raffles City Shopping Centre.

Savills added that Hong Kong's beauty chain Sasa is also planning a comeback with one or two stores.

With the return of more tourists, Savills expect more international brands to enter the Lion City.

The market that will be the primary beneficiary of the return of tourism is Orchard Road. Data from Savills showed that rents in this area will likely grow 2% to 3%.

“With the strong rebound in tourism, Orchard Road rents are expected to rise more than
those in the suburbs,” Alan Cheong, executive director of Savills Research & Consultancy, commented.

Suburban malls, on the other hand, “will continue to dance to the vicissitudes of the economy,” said Savills, adding that rents in the market will only grow 1% to 2% for 2023.