Prime retail rents at Tier 1 malls to climb 1.5-2.5% in 2026

It will be faster than the 1% to 2% expected in other city areas during the same year.

Prime retail rents at Tier 1 malls are expected to climb in 2026, spurred by strong demand from international retailers that are expanding presence in the city-state.

In Orchard and Suburban, in particular, prime retail rents are expected to grow by 1.5 to 2.5% in 2026, faster than the 1% to 2% expected in other city areas during the same year, Cushman & Wakefield said in its Singapore Market Outlook.

Retailers that are adopting a dual-location strategy, opening flagship stores in Orchard whilst expanding in high-traffic suburban malls, can also drive the growth, it added.

The limited availability of vacant space in Tier 1 retail malls has given landlord power in rental pricing despite heightened tenant churn.

The prediction will follow the 0.3% quarter-on-quarter rise in prime retail rents during the third quarter of 2025, as international brands seek to gain a foothold in high-footfall locations, according to another Cushman & Wakefield report.

New brand entrants included Australia’s Yo-Chi, China’s Joocyee at Wisma Atria, Denmark’s Flying Tiger Copenhagen, and US’ Alo.

This will also follow Chinese travellers in Singapore were found by EternityX to have a strong preference for premium quality, trusted brands, and familiar platforms.

The shoppers favoured luxury experiences and reliable service standards, spending more than $9,066 (US$7,000) on premium products in personal care, home care, and financial services, the research found.