Prime retail rents in Orchard and other city areas rose 0.3% q-o-q in 3Q2025, according to a report by Cushman & Wakefield.

The Retail MarketBeat 3Q2025 report reveals that this came on the back of continued demand from international retailers seeking high-footfall locations, visited by both locals and tourists. Recent new entrants include the debut of Australian frozen yoghurt brand Yo-Chi in Orchard Central, Chinese beauty brand Joocyee at Wisma Atria, Danish lifestyle store Flying Tiger Copenhagen, and American athletic apparel Alo at The Shoppes at Marina Bay Sands.

Suburban prime malls also recorded 0.3% q-o-q rental growth, buoyed by continued non-discretionary spending and low vacancy rates, which stood at 6.6% in 2Q2025.

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That said, the report notes some closures among certain F&B and cinema operators amid challenging operating environments in view of rising costs and online competition. Despite this, other activity-based retailers are continuing to expand, such as Munchi Pancakes, Chagee, CocoArt and Wan To Play.

Meanwhile, retail sales in Singapore recorded modest growth of 0.5% year-to-date as of July, according to the report. This was driven by several sectors, such as computer and telecommunications equipment, which saw a 14% year-to-date increase.

Retail sales are projected to sustain moderate growth for the rest of the year amid cautious consumer sentiment, driven by government voucher schemes, high-profile events like the Formula 1 race, and the year-end festive season.

Looking ahead, Singapore’s limited pipeline of sizable projects is expected to support rental resilience within the retail sector. The report adds that new retail supply islandwide is projected to average 300,000 sq ft annually from 2026 to 2029, down more than half from the 10-year historic norm.

Near-term additions remain modest, while larger projects exceeding 100,000 sq ft, such as Bukit V Mall (174,000 sq ft) and the Tanglin Shopping Centre redevelopment (118,000 sq ft), are expected only in 2028.