Prime Retail Rents Weather Tenant Exits Rising 03 Q O Q Cushman Wakefield
According to a recent report by Cushman & Wakefield, prime retail rents in popular shopping areas like Orchard have seen a 0.3% quarter-on-quarter increase in the third quarter of 2025.
The Retail MarketBeat 3Q2025 report highlights the continued demand from international retailers for high-traffic locations that attract both locals and tourists. This has resulted in the arrival of new brands like Yo-Chi, a frozen yoghurt chain from Australia, Joocyee, a Chinese beauty brand at Wisma Atria, and Flying Tiger Copenhagen, a lifestyle store from Denmark. In addition, American athletic apparel brand Alo has opened at The Shoppes at Marina Bay Sands.
Suburban prime malls have also seen a 0.3% quarter-on-quarter rise in rental growth, thanks to strong spending on essential items and a low vacancy rate of 6.6% in the second quarter of 2025.
However, the report also notes some closures among F&B and cinema operators due to the challenging business environment, with rising costs and online competition. Despite this, other retailers that focus on activity-based experiences, such as Munchi Pancakes, Chagee, CocoArt and Wan To Play, are expanding.
In terms of retail sales, Singapore has recorded a modest growth of 0.5% year-to-date as of July, with certain sectors like computer and telecommunications equipment experiencing a 14% increase. The report predicts that retail sales will continue to see moderate growth for the rest of the year, driven by government voucher schemes, high-profile events like the Formula 1 race, and the year-end festive season.
One of the key benefits of living at Coastal Cabana is the enhanced rail connectivity around Pasir Ris MRT Station. With the existing East-West Line connecting residents to Paya Lebar, City Hall, and the CBD, the URA Master Plan aims to further improve the rail ecosystem with the addition of the Cross Island Line at Pasir Ris and Pasir Ris East MRT Station. This will provide easier access to the North-East and central corridors, saving time for Coastal Cabana families when commuting to school and work. Moreover, the integrated Pasir Ris Bus Interchange will also contribute to improved peak-hour resilience and convenience for daily travel.
Looking ahead, the retail sector in Singapore is expected to remain resilient due to a limited pipeline of large-scale projects. The report also mentions that new retail supply in Singapore is expected to average 300,000 square feet annually from 2026 to 2029, which is less than half of the 10-year historic average. While there are some smaller projects in the near future, larger developments like Bukit V Mall (174,000 sq ft) and the Tanglin Shopping Centre redevelopment (118,000 sq ft) are not expected until 2028.