Retail Rents 09 3q2025 Global Brands Fill Gaps Left Exits
In the third quarter of 2025, Singapore’s overall retail rents increased by 0.9% compared to the previous quarter, according to data from the Urban Redevelopment Authority (URA) released on Oct 24. This is the same pace of growth as in the previous quarter. According to CBRE Research, prime floor rents across the island rose by 0.5% quarter-on-quarter, bringing the year-to-date growth to 1.8%.
Despite reports of intense competition, high rents, and rising costs leading to store closures – such as Prive, Alma by Juan Amador, and Cathay Cineplex – leasing activity remained strong in the quarter, according to Tricia Song, head of research for Singapore and Southeast Asia at CBRE.
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CBRE also reported that the private retail market saw a positive net absorption of 5,000 sqm (54,000 sq ft) islandwide, reversing two consecutive quarters of contraction. However, a net increase of 13,000 sqm (140,000 sq ft) in new stock nudged the islandwide retail vacancy rate up from 7.0% in the second quarter of 2025 to 7.2% in the third quarter of 2025.
According to Leonard Tay, head of research at Knight Frank Singapore, while some local F&B operators have exited due to increasing manpower, material, and occupancy costs, their spaces have quickly been taken up by international chains, luxury brands, and specialized service providers such as beauty, wellness, and enrichment centers. Tay adds that the demand for retail space remains resilient, driven by a desire for in-person and curated experiences.
New-to-market brands in the Orchard area include luxury candy retailer Sugarfina and Chinese beauty brand Joocyee at Wisma Atria, Middle Eastern dining brand WEWA at Orchard Central, and Australian self-serve yogurt chain Yo-Chi, which chose Orchard Central for its first overseas outlet, says Wong Xian Yang, head of research for Singapore and Southeast Asia at Cushman & Wakefield (C&W).
“Orchard returned to a positive net demand of 32,000 sq ft in the third quarter of 2025, driven by strategic store openings amid the recovering tourism sector,” Wong notes.
Key openings included The Planet Traveller’s largest Asian flagship at ION Orchard, Lululemon x Within’s first integrated yoga and Pilates concept store in Southeast Asia at Takashimaya Shopping Centre, and Carousell Luxury’s debut physical store at The Centrepoint.
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Prime Orchard, Downtown Core leads growth
Orchard’s retail vacancy rate edged down to 6.5% in the third quarter of 2025 after two consecutive quarters of increases, reflecting sustained interest in prime locations and the limited availability of quality space, observes C&W’s Wong.
He adds that international visitor arrivals as of September 2025 year-to-date (YTD) have reached about 90% of pre-Covid levels (September 2019 YTD), supported by a robust calendar of MICE activities and major entertainment events.
Fashion, beauty, and lifestyle retailers continued to expand their footprint. These included San Francisco women’s fashion brand Bape, Issey Miyake’s menswear label IM Men, and Shiseido’s prestige beauty brand Cle de Peau Beaute, notes CBRE’S Song.
The Downtown Core submarket recorded the strongest performance, with positive net absorption of 9,000 sqm (97,000 sq ft), while the Outside Central Region (OCR) saw a reversal with negative net absorption of a similar amount after outperforming in the second quarter of 2025.
“While retailers are drawn to the OCR’s resilient local catchment, rising rents may have prompted some to explore alternative sites,” says Song.
Chinese brands expanding into Singapore are increasingly moving beyond F&B and fashion into beauty, health, and wellness. Examples include Joocyee, head and scalp spa TTE Elephant at Marina Bay Link Mall, and eyewear brand Bolon, which has continued to expand since its first Wisma Atria store in 2017.
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“The strong performance is underpinned by sustained retailer confidence, particularly from new-to-market brands drawn to Singapore’s large office workforce and the tourism rebound,” says CBRE’s Song. “As a result, vacancy rates in this submarket fell from 8.1% in the second quarter of 2025 to 7.1% in the third quarter of 2025.”
The completion of Lentor Modern Mall in August also contributed to the OCR’s higher vacancy rate, which climbed from 4.5% in the second quarter of 2025 to 5.9% in the third quarter of 2025, as tenants continued moving in.