How Singapore prime retail space continues to attract tenants despite market churn

High-footfall malls outperform as leasing demand remains selective.

Demand for prime retail space in Singapore remains resilient despite elevated tenant turnover, according to Savills, with food and beverage, beauty and experiential operators continuing to drive leasing activity.

The consultancy said leasing demand remains selective as discretionary retailers stay cautious amid cost pressures and uneven sales performance. Well-managed malls with strong footfall, accessibility and complementary tenant mixes continue to attract healthy occupier interest.

Savills pointed to 313@Somerset, where JiBiru Yakitori & Craft Beer and T2 Tea exited in March. However, the prominent unit vacated by T2 Tea at the mall entrance and next to the MRT access point was quickly leased by jeweller Goldheart, highlighting ongoing demand for prime retail locations.

In contrast, leasing conditions remain challenging for smaller malls and less visible retail spaces. At Bugis Street, only about 20% of second-floor shops remain operational, reflecting weaker occupier demand in low-visibility locations.

Savills also noted a series of closures at Northshore Plaza, including Haidilao and Qi Ji, with some units remaining vacant for extended periods. The consultancy said competition from the newer Punggol Coast Mall, which benefits from direct MRT connectivity, may have contributed to the softer performance.