Singapore ranks fifth among global alpha cities for new luxury store openings: Savills
Singapore ranked fifth amongst international alpha cities for brand-new deluxe store startings in 2024, according to a research report by Savills. In its Worldwide High-end Retail 2025 article, the real estate consulting firm found that the city-state was among numerous Asia Pacific (Apac) urban areas that prevailed the rankings.
Shanghai and Beijing won and 2nd, respectively, followed by Tokyo. All 3 cities proved y-o-y development in with regards to new openings, as did Singapore and Hong Kong, the latter of that placed 9th. On the other hand, New York, Paris and London all saw fewer new high-end shop launchings in 2024 compared to the year before, which Savills says reflects accessibility challenges, rather than an absence of appetite.
The report saw that internationally, prime retail spot rents grew in 2024, supported by the return of global vacation. Of the 21 locations monitor by Savills, over 75% registered saw best headline rentals ascending y-o-y or keeping stable in 2024.
Among high-end retail industry locations, Hong Kong kept its leading position as the most pricey retail destination on the planet, with prime headline retail rentals reaching at EUR17,132 ($25,549) per sqm per year. New York’s Madison appeared 2nd at EUR15,559 per sqm per year, rising from 5th location last year, while London’s Bond Street arrived in 3rd at EUR15,333 per sqm per annum, rising from fourth area in 2024. Singapore’s Orchard Road ranked 19th, with prime rents at EUR1,725 per sqm per annum.
In spite of a greater amount of store openings in Singapore in 2024, available property for luxury brands remains limited, notes Sulian Tan-Wijaya, executive director for retail and lifestyle at Savills Singapore. Consequently, she believes this could restrict the growth and development of deluxe brand names in the city, unless new source comes on stream in the form of brand-new retail developments targeting high-end retailers.
In terms of scaled-down destination and gateway metropolitan areas, Apac industry additionally controlled positions, with Bangkok coming in top for new openings.
Regardless, international brand-new luxurious store openings up rose 12% y-o-y in 2024, mainly supported by China, that made up 40% of all new openings worldwide. Omitting China, Apac was still the biggest growth area in shop total terms, accounting for 24% of all new openings around the world.
Marie Hickey, executive of commercial research at Savills, points out that whilst the deluxe retail market’s efficiency stabilised in 2024, decreased consumer belief in the US and China might weigh on growth. She expects this to form real estate investment, with the emphasis over the short term to stay “on the best chances”.
Anthony Selwyn, co-head of international retail at Savills, thinks core deluxe market place will certainly become progressively affordable. “As a consequence, higher strain on prime rents in these industry will carry on, albeit expansion will slow, with availability of space becoming more constricted,” he includes.
