Singapore Ranks Fifth Among Global Alpha Cities New Luxury Store Openings Savills
: Knight Frank
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According to a recent report by Savills, Singapore has been ranked fifth among global alpha cities for the number of new luxury store openings in 2024. This is based on the consulting firm’s Global Luxury Retail 2025 report, which also found that several other Asia Pacific (Apac) cities dominated the rankings.
Shanghai and Beijing took the top spots, followed by Tokyo. All three cities saw a year-on-year increase in new luxury store openings, as did Singapore and Hong Kong, which ranked ninth. In contrast, New York, Paris, and London all experienced a decrease in new luxury store openings in 2024, but this is attributed more to availability challenges rather than a lack of demand.
Overall, global new luxury store openings rose by 12% in 2024, with China accounting for 40% of all new openings worldwide. Apac was the fastest-growing region in terms of store count, even excluding China, and accounted for 24% of all new openings worldwide.
Additionally, the report found that prime retail space rents increased globally in 2024, likely due to the return of international travel. Of the 21 destinations studied by Savills, over 75% saw an increase or stability in prime headline rents. Among luxury retail destinations, Hong Kong retained its position as the most expensive retail destination, with prime rents at EUR17,132 ($25,549) per sqm per annum. It was followed by New York’s Madison and London’s Bond Street.
However, Singapore’s Orchard Road, which came in 19th, had much lower prime rents at EUR1,725 per sqm per annum. According to Sulian Tan-Wijaya, executive director for retail and lifestyle at Savills Singapore, the limited availability of real estate for luxury brands in Singapore could hinder the growth and expansion of these brands unless new developments targeting high-end retailers come on stream.
Anthony Selwyn, co-head of global retail at Savills, predicts that core luxury markets will become increasingly competitive, leading to a slowdown in rent growth and limited availability of space. On the other hand, Marie Hickey, director of commercial research at Savills, believes that weakened consumer sentiment in the US and China may affect the performance of the luxury retail market and shape future real estate investments. However, the focus is expected to remain on the best opportunities in the short term.