Retail rents in Singapore’s prime central areas increased by 1.7% year-on-year in the fourth quarter of 2025, according to a report by Savills Research. The average monthly rent in the Orchard Area reached S$23.60 per square foot, reflecting strong tenant demand for high-visibility locations that attract footfall and enhance brand positioning.
In contrast, suburban retail rents saw a more modest rise of 1% year-on-year, reaching S$14.90 per square foot. This growth was supported by stable occupancy levels and a consistent demand for convenience and lifestyle-oriented retail formats. Overall, retail leasing activity remained steady, with a net absorption of 366,000 square feet recorded across the market in Q4 2025.
Despite a challenging first half of the year, the second half saw stronger leasing momentum. However, the total net absorption for 2025 was 301,000 square feet, significantly below the four-year post-recovery average of 1 million square feet. Consequently, islandwide retail vacancy remained stable at 6.3% in Q4 2025.
Alan Cheong, Executive Director of Research & Consultancy at Savills Singapore, noted, “Whilst consumer spending remains cautious and operating costs are rising, demand has stayed resilient for prime retail assets that continue to deliver footfall and brand visibility.”
Looking forward, Savills projects that approximately 504,000 square feet of new retail space will be completed in 2026, slightly above the five-year historical average. This limited supply is expected to keep pressure on occupancy and rental levels minimal, particularly for prime assets. Retail rents in both Orchard Road and suburban malls are anticipated to increase by 1% to 2% in 2026.
