New retail completions to remain below historical average in Singapore

Annual retail completions will average around 270,000 sq ft over the next two years.

Singapore's retail supply pipeline is expected to remain relatively constrained over the next two years, providing support for occupancy levels and rental stability, according to Savills.

The consultancy estimates that approximately 427,000 sq ft of net lettable retail space will be completed in 2026, slightly below the five-year historical average of 474,000 sq ft.

New completions are projected to decline further in 2027 before a fresh wave of major projects enters the market from 2028 onwards. Upcoming developments include the redevelopments of Tanglin Shopping Centre and Tanjong Katong Complex.

Savills forecasts annual retail completions will average around 270,000 sq ft over the next two years, approaching the record-low 237,000 sq ft completed in 2020.

According to the consultancy, the muted near-term supply pipeline should help support occupancy fundamentals and cushion downward pressure on rents, particularly for well-positioned retail assets.