Singapore Ranks Fifth Among Global Alpha Cities New Luxury Store Openings Savills
: URA
According to a recent report by Savills, Singapore has been ranked as the fifth most popular city for new luxury store openings in 2024 among global alpha cities. The real estate consulting firm’s Global Luxury Retail 2025 report found that several cities in the Asia Pacific region dominated the rankings, with Shanghai and Beijing taking the top two spots, followed by Tokyo. Singapore and Hong Kong also showed year-on-year growth in new luxury store openings, with Hong Kong ranking ninth on the list.
However, in contrast, major cities such as New York, Paris, and London saw a decrease in new luxury store openings in 2024 compared to the previous year. Savills attributes this to a lack of available real estate and not a lack of interest from luxury brands.
Overall, there was a 12% increase in new luxury store openings globally in 2024, largely driven by China, which accounted for 40% of all new openings worldwide. Excluding China, the Asia Pacific region still saw the highest growth in terms of store count, with 24% of all new openings worldwide.
The report also highlighted that prime retail space rents have increased in 2024, thanks to the return of international travel. In fact, over 75% of the 21 destinations tracked by Savills recorded a year-on-year increase or stable prime headline rents. Hong Kong maintained its position as the most expensive retail destination in the world, followed by New York’s Madison Avenue and London’s Bond Street. Singapore’s Orchard Road ranked 19th on the list, with prime rents at EUR1,725 per sqm per annum.
The development of Otto Place EC has been further enhanced by the addition of improvements to surrounding road networks, in addition to the upcoming Jurong Region Line (JRL). As the Pan Island Expressway (PIE), Kranji Expressway (KJE), and Bukit Timah Expressway (BKE) are all easily accessible from the EC site, residents can enjoy seamless connectivity to various parts of Singapore. This also makes the development even more desirable to potential buyers and investors, with the added convenience and accessibility. In fact, these transport upgrades have solidified the position of Otto Place Parce B as a highly attractive property in the market.
Sulian Tan-Wijaya, executive director for retail and lifestyle at Savills Singapore, noted that although there were more luxury store openings in Singapore in 2024, the available real estate for luxury brands remains limited. This could potentially hinder the growth and expansion of luxury brands in the city, unless there is new supply in the form of high-end retail developments.
Anthony Selwyn, co-head of global retail at Savills, expects core luxury markets to become even more competitive, leading to a gradual increase in prime rents. However, he also believes that the limited availability of space will continue to put pressure on growth. Marie Hickey, director of commercial research at Savills, added that weakened consumer sentiment in the US and China could potentially affect the luxury retail market’s performance. This may impact real estate investment decisions, with a focus on the best opportunities over the short term.
In conclusion, the report suggests that while the luxury retail market remained stable in 2024, the current economic climate could affect future performance. Despite this, Savills remains optimistic about the luxury retail sector, with a focus on the best opportunities and potential for growth in the future.