Singapore retail market 2026: Shop closures increase but prime retail demand remains strong

Against a backdrop of geopolitical tensions and economic uncertainties, Singapore’s retail market remains fragmented. The average price of retail space in the central region increased by 2.2% q-o-q in 1Q2026, compared to a 1.7% q-o-q increase in 4Q2025. On the other hand, retail rents declined by 0.6% q-o-q in 1Q2026, reversing a 0.6% quarterly growth in 4Q2025. But it was not a uniform decline, with rents in the central area falling 0.2% quarter on quarter, while rents on the edge of the city recorded a 1.5% quarter on quarter decline. On an annual basis, retail rents increased 1.8% last quarter, which is almost equal to the 1.9% annual increase seen in 4Q2025. According to Knight Frank, this is largely linked to relatively upbeat consumer sentiment in prime retail locations. Knight Frank head of research Leonard Tai suggests that last quarter’s decline in rents may indicate that some landlords are recalibrating their expectations and becoming more aware of the operational pressures on tenants. By directly involving tenants and figuring out how to better support them through in-mall…