Singapore Orchard rents to grow by 1-2% this year

Meanwhile, suburban rental growth could be in the lower end of the forecast range.

According to a Savills report, Singapore’s tourism sector is expected to continue recovering in 2025, with a forecast of 17 million to 18.5 million tourist arrivals, and a record high tourism revenue of S$29 billion to S$30.5 billion.

The upcoming opening of new attractions such as a fifth zoological park, Rainforest Wild Asia, and some new enhancements at Universal Studios in Sentosa, are expected to help to bring in more visitors and encourage spending.

Here’s more from Savills:

Although tourism recovery is set to continue this year alongside the new attractions and a robust pipeline of leisure and MICE events, the overall retail sales performance remains uncertain as consumers shift their spending patterns and behaviours.

As heightened challenges and intense competition continue to hinder businesses, Singapore remains as a prime spot for many international brands. F&B establishments from north Asia continue to open in the central locations and are willing to pay premium rents. Coupled with tight prime retail supply in the near term, sustained leasing demand in tourist destinations and prime-facing locations are expected to continue driving prime retail rents.

Nonetheless, sluggish domestic spending is likely to dampen the rental forecast in suburban malls and other less prime areas. Also, outbound travel in 2025 is expected to expand and this could dilute consumption spend here, especially in the suburban areas.

While Orchard rents are forecast to reach the upper bound of the 1% to 2% forecast range in 2025, Suburban rents are projected to come in around the lower end of our forecast range.