Prime retail demand stays resilient as Singapore malls refresh tenant mix

Orchard vacancy was broadly stable at 7.2% in Q2.

Demand for Singapore retail space remained concentrated among luxury brands, international retailers and experiential concepts in Q2 2026, particularly along Orchard Road and in the prime city centre, according to Savills.

The property consultancy said occupiers continued to seek flagship and larger-format stores to strengthen brand presence and customer engagement. The retail mix also continued to evolve, with greater participation from food and beverage operators, athleisure brands, beauty concepts and experience-led tenants.

Savills noted that the exit of underperforming retailers and selected traditional concepts has given landlords an opportunity to refresh and reposition their tenant mixes.

In Orchard, vacancy remained broadly stable at 7.2% in Q2, compared with 7.1% in Q1, supported by sustained demand and constrained new supply. Downtown Core vacancy, however, rose from 6.5% to 7.4% amid softer leasing activity. Fringe Area vacancy fell to a three-year low of 7.1%, largely following the closure of HarbourFront Centre for redevelopment and the resulting reduction in available retail stock.

Overall Central Region vacancy held at 7.5%. Outside the Central Region, net demand turned negative at 108,000 sq ft, pushing vacancy from 4.1% to 4.7%. Islandwide retail vacancy consequently edged up to 6.5% from 6.3%.

Despite pockets of weakness, the Urban Redevelopment Authority's Central Region retail rental index rebounded 0.6% quarter on quarter in Q2, reversing its Q1 decline. Savills said Fringe Area rents led the recovery, rising 1.3%, while Central Area rents increased 0.2%.

Savills' basket of retail properties showed average monthly rents for prime Orchard Area malls rising 0.3% quarter on quarter to S$23.70 per sq ft. Prime suburban mall rents were unchanged at S$14.90 per sq ft, supported by resilient demand and limited vacancy.

The consultancy said prime malls continued to attract luxury and international brands, although selective occupier demand is limiting broader rental growth.