Singapore ranks fifth among global alpha cities for new luxury store openings: Savills
Singapore ranked 5th amongst global alpha urban areas for brand-new deluxe store openings in 2024, according to a study information by Savills. In its International High-end Retail 2025 report, the property consulting business identified that the city-state was amongst numerous Asia Pacific (Apac) urban areas that prevailed the positions.
Shanghai and Beijing came in first and second, respectively, followed by Tokyo. All 3 cities showed y-o-y development in terms of brand-new openings, as did Singapore and Hong Kong, the latter of that rated nine. Meanwhile, New York, Paris and London all saw less new high-end store launchings in 2024 compared to the year prior to, that Savills says reflects availability challenges, rather than an absence of appetite.
Anthony Selwyn, co-head of global retail at Savills, believes core luxury market place will certainly end up being significantly tough. “Therefore, upward strain on prime leas in these markets will definitely proceed, albeit expansion will slow, with availability of space coming to be much more constrained,” he adds.
The report found that internationally, prime retail space rents grew in 2024, backed by the return of international travel. Of the 21 destinations monitor by Savills, more than 75% signed up saw prime headline rents rising y-o-y or maintaining stable in 2024.
Despite a higher number of store openings in Singapore in 2024, available property for deluxe brands remains limited, notes Sulian Tan-Wijaya, executive director for retail and lifestyle at Savills Singapore. Consequently, she believes this might limit the growth and expansion of deluxe brand names in the city, unless new source comes on flow in the form of new retail developments aim at premium retailers.
In regards to much smaller destination and entrance cities, Apac markets additionally dominated positions, with Bangkok appearing in top for new openings.
Regardless, international brand-new high-end outlet openings up rose 12% y-o-y in 2024, mostly supported by China, that represented 40% of all brand-new openings around the world. Omitting China, Apac was still the greatest growth area in store count terms, representing 24% of all new openings around the world.
Among luxury retail destinations, Hong Kong retained its number one position as one of the most costly retail destination on the planet, with prime headline retail rentals clocking in at EUR17,132 ($25,549) per sqm per annum. New York’s Madison appeared in second at EUR15,559 per sqm per year, rising from 5th place last year, while London’s Bond Street came in third at EUR15,333 per sqm per annum, rising from 4th area last year. Singapore’s Orchard Road placed 19th, with prime hires at EUR1,725 per sqm per annum.
Marie Hickey, head of commercial research at Savills, points out that whilst the high-end retail market’s efficiency stabilised in 2024, decreased consumer belief in the United States and China might weigh on growth. She expects this to shape real estate investment, with the focus over the short-term to remain “on the greatest possibilities”.
