Singapore ranks fifth among global alpha cities for new luxury store openings: Savills
Shanghai and Beijing came in first and second, respectively, followed by Tokyo. All 3 cities showed y-o-y development in terms of new openings, as did Singapore and Hong Kong, the latter of which rated ninth. On the other hand, New York, Paris and London all saw much less new high-end shop openings in 2024 compared to the year before, which Savills says reflects supply challenges, instead of an absence of appetite.
In any case, international new luxury outlet openings up climbed 12% y-o-y in 2024, predominantly backed by China, that accounted for 40% of all brand-new openings worldwide. Omitting China, Apac was still the greatest buildup region in establishment total terms, representing 24% of all brand-new openings around the world.
Amongst luxury retail locations, Hong Kong maintained its leading setting as one of the most costly retail destination on the planet, with prime headline retail rents coming at EUR17,132 ($25,549) per sqm per annum. New York’s Madison came in 2nd at EUR15,559 per sqm per annum, increasing from 5th location last year, while London’s Bond Street arrived in 3rd at EUR15,333 per sqm per annum, increasing from fourth place in 2024. Singapore’s Orchard Road rated 19th, with prime rents at EUR1,725 per sqm per annum.
In spite of a greater amount of store openings in Singapore in 2024, available real estate for high-end brands stays limited, notes Sulian Tan-Wijaya, executive director for retail and lifestyle at Savills Singapore. Consequently, she believes this could limit the growth and growth of high-end brands in the city, unless new supply comes on stream in the form of brand-new retail property developments aim at high-end retailers.
Marie Hickey, head of commercial research at Savills, mentions that while the luxury retail market’s efficiency stabilised in 2024, minimized consumer view in the United States and China could weigh on growth. She anticipates this to shape real estate investment, with the emphasis over the short term to remain “on the best chances”.
Singapore placed fifth amongst global alpha metros for new luxury establishment startings in 2024, according to a research study report by Savills. In its International High-end Retail 2025 report, the realty consulting business identified that the city-state was amongst several Asia Pacific (Apac) metros that reigned over the rankings.
In terms of much smaller destination and portal metropolitan areas, Apac markets additionally dominated rankings, with Bangkok coming in top for brand-new openings.
Anthony Selwyn, co-head of international retail at Savills, believes core deluxe market place will come to be increasingly affordable. “Consequently, upward strain on prime rents in these industry will definitely continue, albeit growth will slow, with availability of space coming to be a lot more constrained,” he adds.
The report discovered that internationally, prime retail location rentals increased in 2024, supported by the return of worldwide vacation. Of the 21 destinations monitor by Savills, around 75% registered saw prime headline rentals ascending y-o-y or maintaining stable in 2024.
