Singapore ranks fifth among global alpha cities for new luxury store openings: Savills
Shanghai and Beijing won and 2nd, respectively, followed by Tokyo. All three cities presented y-o-y development in with regards to brand-new openings, as did Singapore and Hong Kong, the latter of which ranked nine. On the other hand, New york city, Paris and London all saw much less brand-new deluxe outlet launchings in 2024 compared to the year prior to, which Savills says reflects availability challenges, rather than an absence of appetite.
Marie Hickey, director of commercial study at Savills, points out that whilst the deluxe retail market’s efficiency stabilised in 2024, weakened consumer view in the US and China could weigh on growth. She expects this to form real estate investment, with the focus over the short term to stay “on the best opportunities”.
The report discovered that around the world, prime retail location rents grew in 2024, backed by the return of international holiday. Of the 21 places monitor by Savills, more than 75% signed up saw prime headline rents ascending y-o-y or holding steady in 2024.
Regardless, international brand-new luxury outlet openings up increased 12% y-o-y in 2024, primarily supported by China, which accounted for 40% of all new openings worldwide. Excluding China, Apac was still the greatest buildup region in shop count terms, accounting for 24% of all new openings globally.
In regards to smaller destination and entrance cities, Apac markets likewise dominated positions, with Bangkok appearing in top for brand-new openings.
Anthony Selwyn, co-head of worldwide retail at Savills, thinks core luxury markets will become significantly affordable. “Consequently, upward pressure on prime rents in these industry will definitely carry on, albeit growth will slow, with availability of space coming to be much more constricted,” he includes.
Among deluxe retail locations, Hong Kong kept its leading position as the most costly retail place on the planet, with prime headline retail rents clocking in at EUR17,132 ($25,549) per sqm per annum. New york city’s Madison appeared 2nd at EUR15,559 per sqm per annum, increasing from 5th area last year, while London’s Bond Street came in 3rd at EUR15,333 per sqm per year, rising from 4th location last year. Singapore’s Orchard Road ranked 19th, with prime rentals at EUR1,725 per sqm per annum.
Singapore ranked fifth amongst global alpha metros for brand-new deluxe shop launchings in 2024, according to a research study information by Savills. In its Global Luxury Retail 2025 article, the realty consulting business discovered that the city-state was amongst several Asia Pacific (Apac) metros that reigned over the positions.
Regardless of a greater number of establishment startings in Singapore in 2024, available real estate for high-end brands remains limited, notes Sulian Tan-Wijaya, executive director for retail and lifestyle at Savills Singapore. Consequently, she believes this can restrict the growth and development of deluxe brand names in the city, unless new source comes on stream in the form of brand-new retail property developments aim at high-end sellers.
