Fringe rents expose Singapore mall divide

Singapore's planning model steered retail toward self-sufficient regional centres over decades.

Singapore’s 6.3% retail vacancy rate in the first quarter of 2026 masks widening differences in rental performance across its mall and neighbourhood retail assets.

The Fringe Area rental index fell to a record low, reflecting weaker demand across a mixed pool of independent shops, older neighbourhood centres and less centrally managed properties.

Dr Chua Yang Liang, head of research and advisory for JLL Southeast Asia, said the divide stems partly from Singapore’s long-term planning model, which directed retail, employment and recreation towards self-sufficient regional centres.

“This structural divergence actually has been occurring for a long time,” Chua said.

Managed suburban malls continue to benefit from strong residential catchments and habits formed during the pandemic, when working from home increased local footfall. Central locations remain more exposed to tourism, office traffic and overseas spending patterns.

Alan Cheong, executive director for research and consultancy at Savills, said performance within the Fringe Area varies sharply by location. Older estates may face weaker spending power as their populations age, whilst wealthier districts such as Marine Parade continue to support stronger rents.

Quarterly rental movements may also reflect lease timing rather than a lasting decline. Cheong said the index could recover when better-located malls with stronger traffic renew leases at higher rates.

Low vacancy therefore does not mean uniform asset strength. Landlords must continue refreshing tenant mixes as once-popular concepts lose relevance, whilst fragmented properties may struggle to respond as quickly.

Chua said “the headline numbers suggest that they’re still quite resilient in that sense, but we know very well that the retail scene in Singapore is highly fragmented.”

For owners and investors, the key divide is increasingly between professionally managed assets with resilient catchments and older or independently owned properties facing weaker leasing power.