The latest retail report from Knight Frank Singapore reveals a burgeoning food and beverage (F&B) sector, with 3,793 new F&B establishments opening in 2024, against 3,047 closures. This trend suggests an oversupply in the market, prompting calls for regulatory measures to ensure sustainability. Ethan Hsu, Head of Retail at Knight Frank Singapore, noted the need for market cooling measures to maintain a sustainable sector.
Prime retail rents in Singapore showed marginal growth in Q1 2025, with Orchard rents at S$31.20 per square foot per month and suburban areas at S$26.80. Despite this, the retail environment remains challenging due to rising operational costs and labour constraints. The average gross rent of prime retail spaces increased by 0.3% quarter-on-quarter to S$27.90 per square foot per month.
Visitor arrivals in Singapore are on the rise, with 3 million international visitors recorded in January and February 2025, indicating a recovery towards pre-pandemic levels. However, a decline in February’s figures, coupled with impending US tariffs, could signal future challenges.
The report also highlights the rapid expansion and subsequent closures within the F&B sector, with notable closures including Eggslut and Burger & Lobster. The proliferation of F&B outlets, particularly in malls, raises concerns about market saturation. Hsu suggests potential regulatory controls, such as limiting F&B licences and capping net lettable areas, to manage growth sustainably.
As Singapore’s retail sector grapples with high costs and market uncertainty, the report underscores the importance of timely measures to prevent further strain on the F&B landscape.
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