# Central Region retail rents up 0.6% q-o-q in 2Q2026, but store closures lift vacancies

- **Source:** EdgeProp Singapore
- **Published:** 2026-07-24T14:51:47.000Z
- **Author:** Cecilia Chow and Kalynskye Adrian
- **Original:** https://www.edgeprop.sg/property-news/central-region-retail-rents-06-q-o-q-2q2026-store-closures-lift-vacancies
- **Topics:** Commercial & Industrial, Government & Policy, Regional Markets

## Featured rationale

The divergence signals resilient prime rents despite store closures, but rising vacancies and negative absorption may constrain landlords' pricing power across weaker retail submarkets.

## AI summary

Central Region retail rents rose 0.6% q-o-q in 2Q2026, while islandwide private retail vacancy increased from 6.4% to 7.0%.

## Original article

URA's 2Q2026 data showed that retail rents in the Central Region rose by 0.6% q-o-q, reversing the 0.6% q-o-q decline the previous quarter.

Prices of retail space in the Central Region also rose, up 0.8% q-o-q in 2Q2026, moderating from the 2.2% q-o-q increase in the previous quarter, according to URA data.

URA 2Q2026 Retail Overview

Separately, CBRE Research data showed that islandwide prime floor rents increased by 0.4% q-o-q in 2Q2026, bringing 1H2026 rent growth to 0.9%.

Read also: Stable retail property rents in 2Q2026, despite ongoing churn: Knight Frank Singapore

"Sustained demand for prime retail spaces reflected retailers' confidence in tourism and consumer spending," says Tricia Song, CBRE head of research, Singapore and Southeast Asia.

While leasing activity remained healthy in 2Q2026, tensions in the Middle East have made retailers more cautious. Retailers continue to grapple with manpower shortages, rising operating costs — further exacerbated by the Middle East conflict — and intense competition from e-commerce players, adds Song.

Prime retail demand driven by new F&B, retail entrants

According to CBRE, demand for space remained robust, driven primarily by the Singapore debut of international F&B players such as French cafe Bouillon Gavroche, Australian dessert chain Yo-chi Self-Serve Frozen Yogurt, Japanese Yakitori chain Torikizoku, South Korean fast-food chain Lotteria, and Molly Tea, from Shenzhen, China, famous for its floral-scented fresh milk teas.

Other new F&B entrants include Yang's Dumpling from Shanghai, which opened at Bugis Junction, and Japanese café, bakery and French-style tearoom Rituel Tokyo, which made its Singapore debut at Ngee Ann City, notes Knight Frank Singapore head of research, Leonard Tay.

New fashion, toys and hobbies retailers — including Italian fast-fashion retailer Subdued, Japanese footwear brand kurun Tokyo, Snoopy Store & Café featuring Peanuts comics-themed merchandise, and designer art toys and blind-box retailer Happibox — also contributed to strong space take-up, notes CBRE's Song.

"This steady pipeline of new concepts, particularly from overseas brands, highlights that Singapore remains an attractive location for expansion," says Knight Frank's Tay. Its attractiveness also drew returning players, such as British health and wellness retailer Holland & Barrett and South Korean fast-food restaurant chain Mom's Touch, both returning after earlier exits.

Read also: Retail rents slip 0.6% q-o-q in 1Q2026, reversing three consecutive quarters of expansion

"Singapore continues to attract international retailers and first-time physical store entrants, underpinned by its affluent consumer base, recovering tourism and position as a regional business hub," says Wong Xian Yang, Cushman & Wakefield (C&W) head of research, Singapore and Southeast Asia.

F&B remained the key demand driver among these notable foreign debuts, adds Wong, accounting for 53% of prime mall openings in 1H2026. Lifestyle and fashion contributed 16% and 14% of new openings, respectively.

Leasing interest from wellness concepts, including health and fitness operators, remained elevated, adds CBRE's Song, although their larger space requirements continued to present challenges in finding suitable locations.

Retail, F&B closures lead to negative absorption

However, 2Q2026 was also marked by several F&B and retail outlet closures, says Knight Frank's Tay. They include retro-themed local eatery Old School Delights at Esplanade, French restaurant Encore by Rhubarb, century-old Cantonese restaurant Wing Seong Fatty's Restaurant, Jumbo Seafood's flagship East Coast Seafood Centre outlet, Tim Ho Wan at Plaza Singapura, and Don Don Donki alongside other retailers at HarbourFront Centre.

"Notably, closures at some of these locations were driven by redevelopment plans, underscoring the ongoing impact of constant asset repositioning in Singapore's retail and dining landscape," adds Tay.

Other closures in the quarter include the 11-year-old artisanal tart brand Tarte by Cheryl Koh under the Les Amis Group, which closed both outlets in Raffles City and Shaw Centre this April. Singtel's G-Force Network Store at Funan also closed, following the closure of the outlet at IMM earlier. Local spa and skincare brand Porcelain closed its outlets and entered provisional liquidation in April.

Read also: Prime retail rents still showing growth, but looming pressures could cloud outlook: analysts

These closures led to negative net absorption of 29,000 sq m (about 312,000 sq ft) in the islandwide private retail market, according to URA data. It marks a reversal of the positive net absorption in the past three quarters, notes CBRE Research. Consequently, islandwide private retail vacancy rates rose q-o-q from 6.4% to 7.0% in 2Q2026.

'Ongoing tenant churn'

"All submarkets saw negative net absorption in 2Q2026," observes CBRE's Song. The city fringe or Rest of Central Region (RCR) submarket registered the lowest negative net absorption of about 22,000 sq ft, reversing the positive net absorption of 32,000 sq ft the previous quarter.

New pop-ups and store openings in New Bahru likely offset some of the space returned by retailers in the submarket, limiting the extent of the decline, notes CBRE. Vacancy in the submarket therefore rose from 7.9% to 8.3% in 2Q2026.

Conversely, the suburban or Outside Central Region (OCR) submarket reversed its 1Q2026 outperformance, registering the highest negative net absorption across all submarkets, according to CBRE. Negative net absorption in the area reached 129,000 sq ft, compared with positive net absorption of about 140,000 sq ft in 1Q2026.

Large-format store closures during the quarter include Japanese department store Isetan's closure of its store in Nex shopping mall in Serangoon; and Japanese dollar store Daiso, which closed its Tampines 1 outlet in June, following earlier closures of stores in 100AM in Tanjong Pagar and Sembawang Shopping Centre. Amid these closures, OCR vacancy rose from 4.1% to 5.2% in 2Q2026, says CBRE.

"The rise in retail vacancy rates alongside rental growth reflects ongoing tenant churn, with weaker-performing retailers exiting the market amid cost pressures, while demand from new-to-market entrants and expanding retail concepts continues to support rents, particularly in well-located assets," says Wong of C&W.

Despite the increase in vacancy rates, the OCR retail market continued to record the lowest vacancy rate among all submarkets, adds Wong, reflecting resilient retailer demand for suburban malls supported by large residential catchments and recurring consumer spending.

Retail sector to remain 'two-tiered'

Prime retail assets remain supported by tight availability, underpinned by limited new supply, according to C&W. Islandwide retail completions are projected to average just 0.4 million sq ft annually through 2031 — around half the historical average — with most new supply concentrated in suburban mixed-use developments, Wong observes.

"Against this backdrop of limited new supply, many landlords are expected to remain focused on asset enhancement initiatives (AEIs) to unlock value from existing assets," says Wong. Recent and planned mall upgrades include City Square Mall, West Mall, Hougang Mall, Nex and Plaza Singapura. "They reflect ongoing efforts to optimise space utilisation, refresh tenant mixes and enhance the overall shopper experience.”

Wong sees the retail market remaining "two-tier." The AEIs are expected to strengthen the competitive position of top-tier assets, characterised by strong connectivity and curated tenant mixes, further widening market bifurcation, Wong notes.

Nevertheless, stronger tourism spending, underpinned by a healthy pipeline of MICE events and concerts, together with resilient consumer spending and Singapore's safe-haven status, should continue to support demand for prime retail space, adds CBRE’s Song.

With new supply over the next three years expected to remain below historical norms, CBRE Research forecasts prime retail rents to grow by 1–2% in 2026.

While tourist arrivals are expected to remain stable with higher per capita spending in 2H2026, the latest tranche of government household vouchers for essential goods could ease cost pressures, potentially lifting discretionary spending, adds Knight Frank's Tay.

"These factors are likely to underpin retail activity," continues Tay. He projects rents to remain stable and register growth of 2% to 4% for the full year 2026, despite ongoing challenges in the sector.

## Chinese translation

> Translation model: grok

### 2026年第二季中央区零售租金环比升0.6%，但店铺关闭推高空置率

2026年第二季零售租金回升，扭转上季跌势，但空置率由上季6.4%升至7%。

市区重建局（URA）2026年第二季数据显示，中央区零售租金环比上涨0.6%，扭转了上季环比下跌0.6%的走势。

据URA数据，中央区零售空间价格亦上涨，2026年第二季环比升0.8%，涨幅较上季的环比2.2%有所放缓。

URA 2026年第二季零售概况

另据世邦魏理仕（CBRE）研究数据，全岛优质楼层租金在2026年第二季环比上涨0.4%，使2026年上半年租金累计增长达0.9%。

另读：莱坊新加坡：尽管租户更迭持续，2026年第二季零售物业租金保持稳定

CBRE新加坡及东南亚研究主管宋慧怡（Tricia Song）表示：“对优质零售空间的持续需求，反映零售商对旅游业与消费支出的信心。”

尽管2026年第二季租赁活动保持健康，中东紧张局势令零售商更趋谨慎。Song补充，零售商仍面临人力短缺、营运成本上升——中东冲突进一步加剧——以及来自电商的激烈竞争。

优质零售需求由新餐饮与零售入场者驱动

据CBRE，空间需求依然强劲，主要由来新加坡首度亮相的国际餐饮品牌推动，例如法国咖啡馆Bouillon Gavroche、澳大利亚甜品连锁Yo-chi Self-Serve Frozen Yogurt、日本烧鸟连锁Torikizoku、韩国快餐连锁Lotteria，以及以花香鲜奶茶闻名、来自中国深圳的Molly Tea。

莱坊新加坡研究主管郑礼安（Leonard Tay）指出，其他新餐饮入场者还包括在白沙浮广场（Bugis Junction）开业的上海杨记小笼包（Yang's Dumpling），以及在义安城（Ngee Ann City）首度登陆新加坡的日本咖啡馆、面包店兼法式茶室Rituel Tokyo。

CBRE的Song指出，新时装、玩具与兴趣爱好零售商——包括意大利快时尚零售商Subdued、日本鞋履品牌kurun Tokyo、以史努比与《花生漫画》主题商品为特色的Snoopy Store & Café，以及设计师艺术玩具与盲盒零售商Happibox——亦推动了强劲的空间吸纳。

莱坊的Tay表示：“这一连串新概念、尤其是海外品牌的稳定进驻，突显新加坡仍是具吸引力的扩张地点。”其吸引力也吸引了回归业者，例如英国健康与保健零售商Holland & Barrett，以及韩国快餐连锁Mom's Touch，两者均在早前退出后重返。

另读：2026年第一季零售租金环比跌0.6%，结束连续三季扩张

戴德梁行（Cushman & Wakefield，C&W）新加坡及东南亚研究主管黄贤阳（Wong Xian Yang）表示：“在富裕消费群体、旅游业复苏以及区域商业枢纽地位支撑下，新加坡持续吸引国际零售商与首次开设实体店的入场者。”

Wong补充，在这些显著的外资首发中，餐饮仍是关键需求驱动力，占2026年上半年优质商场开业的53%。生活方式与时装分别贡献新开业的16%与14%。

CBRE的Song补充，来自健康养生概念（包括健身运营商）的租赁兴趣仍处高位，但其较大的空间需求继续给寻找合适地点带来挑战。

零售与餐饮关闭导致负吸纳

不过，莱坊的Tay表示，2026年第二季也出现多起餐饮与零售门店关闭，包括滨海艺术中心复古主题本地食肆Old School Delights、法国餐厅Encore by Rhubarb、百年粤菜馆荣生肥仔餐厅（Wing Seong Fatty's Restaurant）、珍宝海鲜（Jumbo Seafood）东海岸海鲜中心旗舰店、Plaza Singapura的添好运，以及港湾中心（HarbourFront Centre）的唐吉诃德（Don Don Donki）及其他零售商。

Tay补充：“值得注意的是，部分地点关闭由重建计划驱动，突显新加坡零售与餐饮格局中资产持续重新定位的影响。”

当季其他关闭还包括Les Amis集团旗下成立11年的手工挞品牌Tarte by Cheryl Koh，于今年4月关闭莱佛士城与Shaw Centre两家门店；Singtel位于Funan的G-Force Network Store亦关闭，继早前IMM门店关闭之后。本地水疗与护肤品牌Porcelain关闭门店，并于4月进入临时清盘。

另读：分析师：优质零售租金仍在增长，但潜在压力或令前景蒙阴

据URA数据，这些关闭导致全岛私人零售市场净吸纳为负29,000平方米（约312,000平方英尺）。CBRE研究指出，这扭转了过去三个季度的正净吸纳。因此，全岛私人零售空置率在2026年第二季由6.4%环比升至7.0%。

“持续的租户更迭”

CBRE的Song观察道：“所有次级市场在2026年第二季均录得负净吸纳。”城市边缘或其余中央区（RCR）次级市场负净吸纳最低，约22,000平方英尺，扭转了上季正净吸纳32,000平方英尺的走势。

CBRE指出，New Bahru的新快闪店与新开业可能抵消了该次级市场部分退租空间，限制了跌幅。该次级市场空置率因此由7.9%升至2026年第二季的8.3%。

相反，据CBRE，郊区或中央区以外（OCR）次级市场扭转了2026年第一季的跑赢表现，录得各次级市场中最高的负净吸纳。该区负净吸纳达129,000平方英尺，对比第一季约140,000平方英尺的正净吸纳。

当季大型门店关闭包括日本百货伊势丹（Isetan）关闭实龙岗Nex购物中心门店；以及日本百元店大创（Daiso）于6月关闭淡滨尼1号（Tampines 1）门店，此前已关闭丹戎巴葛100AM与三巴旺购物中心门店。在这些关闭之下，OCR空置率由4.1%升至2026年第二季的5.2%，CBRE表示。

C&W的Wong说：“零售空置率上升与租金增长并存，反映持续的租户更迭——表现较弱的零售商在成本压力下退出市场，而来自新进场者与扩张零售概念的需求继续支撑租金，尤其是地段优越的资产。”

Wong补充，尽管空置率上升，OCR零售市场在各次级市场中仍录得最低空置率，反映郊区商场在庞大住宅腹地与经常性消费支撑下，零售商需求具韧性。

零售业将保持“两极分化”

据C&W，优质零售资产仍受供应紧张支撑，背后是新供应有限。Wong观察，全岛零售竣工量预计到2031年年均仅约40万平方英尺——约为历史均值的一半——且多数新供应集中在郊区综合发展项目。

Wong表示：“在新供应有限的背景下，许多业主预计将继续聚焦资产提升计划（AEI），以释放现有资产价值。”近期及计划中的商场升级包括City Square Mall、West Mall、后港商场（Hougang Mall）、Nex与Plaza Singapura。“这些举措反映持续优化空间利用、刷新租户组合并提升整体购物体验的努力。”

Wong认为零售市场将保持“两极分化”。AEI预计将强化具强连接性与精心租户组合的顶级资产的竞争地位，进一步扩大市场分化，Wong指出。

不过，CBRE的Song补充，在会展与演唱会等活动管线健康支撑下的更强旅游消费，加上具韧性的消费支出与新加坡避险地位，应继续支撑优质零售空间需求。

随着未来三年新供应料仍低于历史常态，CBRE研究预测优质零售租金在2026年将增长1%至2%。

莱坊的Tay补充，尽管2026年下半年游客抵达量料保持稳定且人均消费更高，最新一轮政府家庭必需品代金券可能缓解成本压力，或提振可自由支配消费。

Tay继续说：“这些因素很可能支撑零售活动。”他预计租金保持稳定，并在2026全年录得2%至4%增长，尽管行业仍面临持续挑战。