Singapore retail vacancy dips to 6.9% in Q3

About 540,000 sq ft of new retail space is estimated to enter the market in 2025, down from 679,000 sq ft in 2024.

Retail vacancy in Singapore edged down in the third quarter of 2025, as improved leasing in key central districts and consistent demand in suburban malls offset high operating costs and uneven consumer spending.

According to Savills Singapore’s Q3 Retail Report, islandwide vacancy fell to 6.9%, from 7.1% in Q2, aided by better take-up in Orchard Road and the Downtown Core, alongside steady suburban footfall.

The report highlighted a tapering supply pipeline, which may support future occupancy and mitigate rent pressures. Savills estimates about 540,000 sq ft of new retail space will enter the market in 2025, down from 679,000 sq ft in 2024.

From 2026 to 2027, supply is expected to fall below 290,000 sq ft annually, before ramping up again post-2028 with large-scale projects like the Marina Bay Sands expansion.

Despite signs of recovery, tenant challenges persist. High costs and inconsistent consumer demand are contributing to elevated tenant turnover, particularly in cost-sensitive suburban malls where rental growth remains limited.

Singapore continues to draw premium brands and new market entrants. Recent retail openings include Laopu Gold at Marina Bay Sands, a premium concept store from Chow Tai Fook at Jewel, as well as Alo Yoga and On—both debuting flagship stores in high-footfall areas.

The F&B segment is also seeing new entrants: Chick-fil-A is slated to open at Bugis+ in December, with Lotteria and Chipotle expected in 2026.

Whilst overall leasing sentiment is stable, Savills observed some pushback on rents in prime malls, particularly from overseas brands based in China, as economic headwinds in their home markets weigh on expansion plans.

The firm forecasts retail rents could rise to 2% in 2025 across both Orchard Road and Suburban locations.