Singapore ranks fifth among global alpha cities for new luxury store openings: Savills
Shanghai and Beijing came in first and 2nd, respectively, followed by Tokyo. All three cities proved y-o-y growth in terms of brand-new openings, as did Singapore and Hong Kong, the latter of which placed nine. On the other hand, New York, Paris and London all saw much less brand-new high-end outlet openings in 2024 compared to the year before, that Savills says reflects availability challenges, rather than a lack of appetite.
Despite a higher amount of store openings in Singapore in 2024, available real estate for luxury brands remains limited, notes Sulian Tan-Wijaya, executive director for retail and lifestyle at Savills Singapore. Consequently, she believes this might restrict the development and growth of luxury brands in the city, unless new supply comes on flow in the form of brand-new retail property developments targeting high-end retailers.
Marie Hickey, executive of commercial study at Savills, explains that although the luxury retail market’s performance stabilised in 2024, minimized consumer sentiment in the US and China can weigh on growth. She expects this to shape real estate investment, with the emphasis over the short-term to stay “on the most ideal chances”.
In terms of smaller location and entrance cities, Apac markets also controlled positions, with Bangkok appearing in top for brand-new openings.
Singapore rated 5th amongst global alpha metros for brand-new deluxe shop startings in 2024, according to a study report by Savills. In its Global High-end Retail 2025 article, the realty consulting company discovered that the city-state was amongst a number of Asia Pacific (Apac) urban areas that dominated the rankings.
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Among deluxe retail locations, Hong Kong retained its number one position as the most costly retail place worldwide, with prime headline retail rents clocking in at EUR17,132 ($25,549) per sqm per year. New York’s Madison appeared in second at EUR15,559 per sqm per annum, climbing from fifth place last year, while London’s Bond Street arrived in 3rd at EUR15,333 per sqm per year, climbing from 4th area in 2024. Singapore’s Orchard Road ranked 19th, with prime rents at EUR1,725 per sqm per annum.
In any case, worldwide brand-new luxurious store openings up climbed 12% y-o-y in 2024, mostly supported by China, which represented 40% of all new openings worldwide. Leaving Out China, Apac was still the biggest growth region in store count terms, representing 24% of all new starts worldwide.
Anthony Selwyn, co-head of international retail at Savills, believes core deluxe markets will come to be significantly affordable. “Consequently, higher strain on prime rents in these industry will definitely proceed, albeit development will slow, with availability of space ending up being a lot more constrained,” he adds.
The report found that globally, prime retail location leas grew in 2024, upheld by the return of worldwide travel. Of the 21 locations tracked by Savills, around 75% registered saw prime headline rentals rising y-o-y or holding steady in 2024.
