Singapore ranks fifth among global alpha cities for new luxury store openings: Savills
Singapore ranked fifth among global alpha urban areas for brand-new luxury establishment openings in 2024, according to a study information by Savills. In its Global Luxury Retail 2025 report, the property consulting firm identified that the city-state was among several Asia Pacific (Apac) urban areas that prevailed the positions.
In any case, international brand-new luxury shop openings climbed 12% y-o-y in 2024, mainly backed by China, that accounted for 40% of all brand-new openings around the world. Excluding China, Apac was still the greatest buildup area in store count terms, making up 24% of all new starts worldwide.
Anthony Selwyn, co-head of worldwide retail at Savills, thinks core high-end markets will certainly end up being increasingly competitive. “As a consequence, higher strain on prime leas in these markets will continue, albeit growth will slow, with availability of space coming to be much more constrained,” he adds.
In terms of smaller location and gateway metropolitan areas, Apac markets additionally dominated rankings, with Bangkok coming in top for new openings.
The report found that around the world, prime retail spot rentals grew in 2024, backed by the return of worldwide vacation. Of the 21 destinations tracked by Savills, over 75% registered saw best headline rentals ascending y-o-y or keeping constant in 2024.
Among high-end retail destinations, Hong Kong preserved its leading position as one of the most costly retail destination in the world, with prime heading retail rentals clocking in at EUR17,132 ($25,549) per sqm per year. New york city’s Madison appeared in 2nd at EUR15,559 per sqm per annum, climbing from 5th location last year, while London’s Bond Street came in 3rd at EUR15,333 per sqm per year, rising from 4th location last year. Singapore’s Orchard Road placed 19th, with prime hires at EUR1,725 per sqm per annum.
Despite a greater amount of store startings in Singapore in 2024, available realty for luxury brands stays limited, notes Sulian Tan-Wijaya, executive director for retail and lifestyle at Savills Singapore. Consequently, she thinks this can restrict the development and development of high-end brand names in the city, unless new source comes on stream in the form of brand-new retail developments aim at premium stores.
Marie Hickey, executive of commercial research study at Savills, mentions that while the high-end retail market’s performance stabilised in 2024, weakened consumer belief in the US and China could weigh on growth. She expects this to shape real estate investment, with the emphasis over the short term to stay “on the most ideal possibilities”.
Shanghai and Beijing came in first and 2nd, respectively, followed by Tokyo. All 3 cities proved y-o-y development in with regards to brand-new openings, as did Singapore and Hong Kong, the latter of which ranked 9th. Meanwhile, New york city, Paris and London all saw much less brand-new deluxe shop launchings in 2024 compared to the year prior to, that Savills says reflects supply challenges, as opposed to an absence of appetite.
