Super-prime demand reshapes Singapore retail strategies

Retailers adopt new approaches as rising rents push demand into secondary malls.

Demand for super-prime retail space in Singapore is surging as consumers continue to favor mall shopping, luxury brands chase prime adjacencies, and developers diversify in response to rising rents and reduced vacancies.

“85% of our customers are still shopping in malls, which continues to fuel demand for mall and super prime spaces,” said Sona Aggarwal, Head of Retail Sales & Strategy, APAC, Cushman & Wakefield. “Luxury retailers have the bandwidth and the pockets to keep wanting the right adjacencies on Orchard Road.”

Yet, pressure from higher rents and limited vacancies is forcing developers and retailers to broaden their approach. “Secondary malls in local catchments within Singapore, for example, Tampines Mall. Those spaces are becoming really important, and we're seeing the rental uptake in those spaces, which corroborates this theory,” Aggarwal explained.

Retailers are responding with agile strategies to maintain presence in competitive markets. “While luxury brands still want Orchard Road presence or prime real estate presence… they are starting to develop alternative strategies like pop up stores in secondary malls to maintain brand awareness, to drive customer uptake,” Aggarwal said.

She pointed to examples such as Coach’s shophouse concept with a café in Keong Saik, as well as tech-enabled brands like Decathlon opening smaller footprints to support click-and-collect services.

Emerging retail sectors are also driving uptake. “Almost 50% of the uptake in first half of 2025 was F&B outlets,” Aggarwal said, citing the rise of experiential dining, Asian cuisines, lifestyle-driven retailers like Don Don Donki, and the fast-growing athleisure segment. Mixed-use developments are also becoming important, with consumers seeking spaces where they can “eat, live, work, play.”

Looking ahead, expansion opportunities remain, but challenges loom. “Retailers are always looking to expand,” Aggarwal said. “But what I would caution… the risk of getting it wrong is pretty high now, higher than it was before, given the cost pressures and economic headwinds.”