Singapore’s retail landscape is evolving as it moves from aggressive expansion to a focus on outlet optimisation, according to Knight Frank Singapore’s Q4 2025 Retail Report. The report highlights a shift towards experience-led strategies, with success now defined by finesse rather than footprint, as stated by Knight Frank Singapore CEO Galven Tan.
Prime retail rents in Singapore’s Orchard area reached S$31.70 per square foot per month, whilst suburban rents stood at S$27.20. The island-wide average gross rent of prime retail spaces increased by 0.5% quarter-on-quarter to S$28.50 per square foot per month in Q4 2025. This growth is attributed to a rise in international visitor arrivals, which totalled 15.5 million from January to November 2025, a 2.7% increase compared to the same period in 2024.
The Marina-City Hall-Bugis cluster experienced the strongest rental growth, driven by events such as the Singapore Grand Prix and a resurgence in Meetings, Incentives, Conferences and Exhibitions (MICE) activities. Prime rents in this area grew by 4.8% in 2025.
Retail sales, excluding motor vehicles, reached S$7.6b in October and November 2025, surpassing the S$7.3b recorded in July and August. The F&B sector remains a key driver of leasing demand, with Chinese brands leading the charge in refining their market strategies. Japanese, Korean, and American F&B operators are also expanding in Singapore, despite high operating costs.
Looking ahead, luxury segments and experiential categories are expected to remain resilient, whilst mid-market retailers may face challenges. Knight Frank projects prime retail rents to grow by 2% to 4% in 2026, supported by stable tourist arrivals and Singapore’s position as a regional hub for entertainment and events.
