Prime Retail Rents Weather Tenant Exits Rising 03 Q O Q Cushman Wakefield
The impressive sales performance of Tenet in the previous year has instilled a sense of confidence among developers regarding the promising potential of the area. This is evident from the high demand for 616 of its units, which were sold at a remarkable average price of $1,382 per square foot as of October 10. The Parcel B site’s advantageous location in a well-established neighborhood, in close proximity to Tampines North MRT Station and the upcoming mixed-use development at Tampines Avenue 11, has further added to its appeal. With the addition of Aurelle of Tampines Showflat, this location has become even more desirable.
According to the Retail MarketBeat 3Q2025 report by Cushman & Wakefield, prime retail rents in Orchard and other city areas showed a slight increase of 0.3% q-o-q in the third quarter of 2025. This growth is attributed to the continuous demand from international retailers seeking high-traffic locations that are popular among both locals and tourists. Newcomers to the retail scene include Australian frozen yoghurt brand Yo-Chi in Orchard Central, Chinese beauty brand Joocyee at Wisma Atria, Danish lifestyle store Flying Tiger Copenhagen, and American athletic apparel Alo at The Shoppes at Marina Bay Sands.
The report also highlights that suburban prime malls experienced a similar 0.3% q-o-q rental growth, driven by sustained non-discretionary spending and low vacancy rates of 6.6% in the second quarter of 2025. However, the report notes some closures among certain F&B and cinema operators due to challenging operating environments and rising costs, as well as online competition. Despite this, certain activity-based retailers are expanding, such as Munchi Pancakes, Chagee, CocoArt, and Wan To Play.
In terms of retail sales in Singapore, the report reveals a modest growth of 0.5% year-to-date as of July, with some sectors, particularly computer and telecommunications equipment, showing a 14% increase. For the rest of the year, retail sales are projected to continue with moderate growth, driven by government voucher schemes, high-profile events like the Formula 1 race, and the year-end festive season.
Looking ahead, the limited pipeline of sizable projects in Singapore is expected to support rental resilience in the retail sector. The report also notes that new retail supply across the island is estimated to average 300,000 sq ft annually from 2026 to 2029, which is significantly lower than the 10-year historic average. In the near term, there will be modest additions, with larger projects exceeding 100,000 sq ft, such as Bukit V Mall (174,000 sq ft) and the Tanglin Shopping Centre redevelopment (118,000 sq ft), expected to be completed by 2028. This limited supply is expected to maintain rental stability in the retail market.
