Retail rents in Singapore have shown stability in Q2 2026, according to Knight Frank Singapore’s latest report. Despite geopolitical uncertainties and cost pressures, the retail sector has maintained resilience by adjusting rental structures. Galven Tan, CEO of Knight Frank Singapore, suggests that “retail resilience could start by tweaking rental flexibility with lower base rents and more shared growth through elevating a performance variable.”
Prime retail rents in Orchard Road are at S$31.90 per square foot per month, whilst suburban areas are at S$27.80. The island-wide average gross rent for prime retail space increased slightly by 0.7% quarter-on-quarter to S$29.00 per square foot per month.
Visitor arrivals between April and May 2026 totalled 2.6 million, a decrease from earlier in the year, yet tourism spending reached a record S$32.8 billion in 2025. This indicates a shift towards higher spending on experiences rather than shopping, as Singapore evolves into an experiential destination.
The retail landscape is also seeing closures and new entrants. Notable closures include Old School Delights and Jumbo Seafood’s flagship outlet, whilst new openings like CHAGEE and Torikizoku highlight Singapore’s continued appeal for expansion. The upcoming RTS Link is expected to enhance Johor Bahru’s attractiveness as an alternative market for Singapore-based operators.
Looking ahead, tourist arrivals are expected to remain stable with increased spending, supporting retail activity. Rents are projected to grow by 2% to 4% for the full year 2026.
