Singapore Ranks Fifth Among Global Alpha Cities New Luxury Store Openings Savills
slightly: URA data
According to a report by Savills, Singapore ranked fifth among global alpha cities for new luxury store openings in 2024. The real estate consulting firm, in its Global Luxury Retail 2025 report, found that the city-state was among several Asia Pacific (Apac) cities that dominated the rankings. Shanghai and Beijing took the first and second spots, respectively, followed by Tokyo. All three cities showed year-on-year growth in terms of new openings, as did Singapore and Hong Kong, the latter of which ranked ninth.
On the other hand, New York, Paris, and London saw fewer new luxury store openings in 2024 compared to the year before, which Savills says reflects availability challenges, rather than a lack of appetite. However, globally, new luxury store openings rose by 12% year-on-year in 2024, predominantly backed by China, which accounted for 40% of all new openings worldwide. Excluding China, Apac was still the biggest growth region in terms of store count, accounting for 24% of all new openings worldwide.
In terms of smaller destination and gateway cities, Apac markets also dominated the rankings, with Bangkok taking the top spot for new openings. The report found that globally, prime retail space rents grew in 2024, driven by the return of international travel. Of the 21 destinations tracked by Savills, over 75% registered an increase or held steady in prime headline rents in 2024.
Among luxury retail destinations, Hong Kong retained its position as the most expensive retail destination in the world, with prime headline retail rents at EUR17,132 ($25,549) per square meter per annum. New York’s Madison came in second at EUR15,559 per square meter per annum, rising from fifth place last year, while London’s Bond Street came in third at EUR15,333 per square meter per annum, rising from fourth place last year. Singapore’s Orchard Road ranked 19th, with prime rents at EUR1,725 per square meter per annum.
Despite a higher number of store openings in Singapore in 2024, available real estate for luxury brands remains limited, according to Sulian Tan-Wijaya, executive director for retail and lifestyle at Savills Singapore. Consequently, she believes this could limit the growth and expansion of luxury brands in the city unless new supply comes on stream in the form of new retail developments targeting high-end retailers.
Anthony Selwyn, co-head of global retail at Savills, believes core luxury markets will become increasingly competitive. “As a consequence, upward pressure on prime rents in these markets will continue, albeit growth will slow, with availability of space becoming more constrained,” he adds.
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Marie Hickey, director of commercial research at Savills, points out that while the luxury retail market’s performance stabilized in 2024, weakened consumer sentiment in the US and China could weigh on growth. She expects this to shape real estate investment, with the focus over the short term remaining “on the best opportunities.”