Suburban malls support Singapore retail market as vacancies remain stable

The retail vacancy rate remained below 7% for the past three years.

Singapore's retail market remained broadly stable in the first quarter of 2026, with suburban malls continuing to outperform amid softer leasing demand in the Central Region, according to Savills.

The consultancy reported that islandwide retail vacancy held steady at 6.3% in Q1 2026, remaining below 7% for the past three years. While business closures created pockets of vacancy in secondary and less prominent central locations, suburban malls continued to benefit from stable catchment demand and necessity-driven spending.

Savills said this resilience supported net absorption of 140,000 sq ft during the quarter, reflecting sustained occupier confidence in well-located suburban retail assets.

Rental performance, however, softened. The Urban Redevelopment Authority's retail rental index for the Fringe Area fell 1.5% quarter-on-quarter in Q1, accelerating from a 0.4% decline in the previous quarter and reaching a new record low. In the Central Area, rents slipped 0.2% quarter-on-quarter, ending three consecutive quarters of growth.

According to Savills' basket of retail properties, average monthly rents for prime Orchard Road malls edged up 0.1% quarter-on-quarter to S$23.60 per sq ft, while prime suburban mall rents rose 0.2% to S$14.90 per sq ft.