Retail occupancy steady in Q1 despite high-profile store closures

Visitor inflows climbed whilst leasing demand absorbed retail exits across island malls.

Singapore’s retail occupancy held steady at 93.7% in the first quarter (Q1) of 2026 despite several high-profile store closures, as vacant space was backfilled by new and existing tenants, according to the latest ETC Digest by OrangeTee & ETC Research.

International Visitor Arrivals (IVA) reached 4.4 million in Q1 2026, up from 4 million in the fourth quarter (Q4) of 2025.

The Singapore Tourism Board projects 17.0 million to 18.0 million IVA in 2026, with tourism receipts estimated at $31b to $32.5b.

Planned events are expected to support visitor numbers, whilst global uncertainty may weigh on the sector.

Occupancy remained stable across most of the island as leasing demand continued across malls, the firm noted.

Store closures included The Providore, T2 Tea, Itacho Sushi, and Pull & Bear. Vacant units were replaced quickly by new and existing brands.

Fringe and suburban areas recorded a slight increase in occupancy from 94.2% in Q4 2025 to 94.3% in Q1 2026, supported by demand from food and beverage operators and essential goods and services providers.

Orchard/Scotts Road occupancy fell from 93.2% to 92.9%, whilst Other City Areas declined from 92.7% to 92.6%.

Prime first-storey rents in Orchard/Scotts Road rose 0.25% quarter on quarter to $41.95 per square foot (psf) in Q1 2026.

Rents in Fringe/Suburban Areas increased 0.25% to $34.70 psf, whilst those in Other City Areas were unchanged.

Geopolitical uncertainty from the ongoing Middle East conflict presents downside risk, as inflationary pressure from higher energy costs and supply chain disruption may affect discretionary spending.

Retailers continue to face manpower shortages and high business costs.

The firm said in the report that outlook remains supported by tight supply and projected growth in IVA, whilst retail rents are expected to remain broadly stable with modest growth in 2026.