Retail rents rise up to 0.6% as supply tightens

Sales outlook weakens amid geopolitical and inflation risks.

Prime retail rents rose across all key submarkets in Q1 2026, even as Cushman & Wakefield warned that retail sales growth could come under pressure this year if the Middle East conflict persists or escalates.

Other City Areas recorded the fastest quarterly growth, with prime rents up 0.6% to $21.1 per sq ft per month, whilst Orchard rents rose 0.4% to $36.5 and Suburban rents increased 0.3% to $33.3.

Cushman & Wakefield said Orchard’s gains were supported by sustained luxury demand, with new openings by Zimmermann, Jil Sander, Mikimoto, Tudor, IWC, and Jaeger-LeCoultre reinforcing the precinct’s position as Singapore’s core luxury destination.

Other City Areas and Suburban areas also continued to attract retailers seeking accessible, well-positioned space, helped by new-to-market brands and brisk backfilling activity.

The consultancy said experiential retail formats are likely to outperform amid limited availability of well-located space, citing concepts such as Prada’s in-boutique café at ION Orchard and Lululemon’s wellness-focused flagship at Takashimaya.

It added that occupiers should move early to secure suitable units as annual retail completions are projected to average only 0.4 million sq ft from 2026 to 2029, about half the historical norm.

At the market level, Singapore’s retail vacancy rate stood at 6.3%, with positive net absorption of 366,000 sq ft in Q4 2025, led by Suburban and Other City Areas.

Cushman & Wakefield said rising household incomes, resilient labour market conditions, and Singapore’s safe-haven status could continue to support consumer spending despite inflation and transport cost risks.