# Prime Orchard malls' retail rents inch up 0.3% in second quarter; limited new supply ahead

- **Source:** EdgeProp Singapore
- **Published:** 2026-08-21T02:27:42.000Z
- **Author:** EdgeProp Singapore
- **Original:** https://www.edgeprop.sg/property-news/prime-orchard-malls-retail-rents-inch-03-second-quarter-limited-new-supply-ahead
- **Topics:** Commercial & Industrial, Transactions & Deals

## Featured rationale

Sustained leasing demand and constrained new supply may support further rental growth, with Savills projecting Orchard and suburban mall rents to rise 1–2% this year.

## AI summary

Prime Orchard mall rents rose 0.3% q-o-q to $23.70 psf monthly in 2Q, while 2026 retail supply of 309,000 sq ft trails the five-year average.

## Original article

The average monthly rent for prime malls in the Orchard area went up slightly by 0.3% q-o-q to $23.70 psf in the second quarter of this year, extending modest gains from the first quarter.

That is based on Savills Singapore's basket of retail properties, the real estate consultancy said on Aug 19.

Leasing demand in the prime retail segment remains supported by luxury, beauty, wellness and experiential brands.

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Moreover, even as tourist arrivals declined y-o-y in the second quarter, Orchard Road’s prime retail malls are drawing spending from Gen Z and Gen Alpha, Savills observed.

Demand for such space may thus be buttressed by concepts targeting these young consumers, noted Alan Cheong, executive director of research and consultancy at Savills Singapore.

Sulian Tan-Wijaya, executive director, deputy head of private wealth and head of retail at the firm, said: "With Gen Z and Gen Alpha increasingly driving retail spending trends, we note that fashion brands like Brandy Melville and Subdued, which target this young segment of female customers, are trading well."

She added that retailers, particularly those in fashion and beauty as well as cafes, stand to benefit if their brand narrative and offerings resonate with this "increasingly influential" group of consumers.

Meanwhile, the vacancy rate at retail malls in the Orchard area held largely steady on a q-o-q basis at 7.2%, rising a tad from 7.1% in the quarter prior. Savills said this was supported by sustained demand and a constrained supply pipeline.

Leasing demand across the Orchard area continued to be concentrated among luxury brands, international retailers and experiential concepts — particularly along Orchard Road and within the prime city centre, where occupiers still sought flagship stores and larger-format spaces for a stronger brand presence and to better engage customers.

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On the supply end, it estimates about 309,000 sq ft of net lettable area is scheduled for completion in 2026, below the five-year average of 474,000 sq ft.

In 2027, new supply is expected to moderate further to 241,000 sq ft — about half the historical average.

Notable projects above 100,000 sq ft in the pipeline:

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*Savills estimate, based on an efficiency rate of between 70% and 75%. Source: Company announcements, URA, Savills Research & Consultancy.

"Against this backdrop of limited new supply, landlords have stepped up asset enhancement and redevelopment initiatives to enhance asset performance and adapt to evolving consumer preferences," Savills noted.

These include the ongoing revamps of Plaza Singapura and Nex, and the redevelopment of HarbourFront Centre.

Even among malls not undergoing major redevelopment, landlords are refreshing their tenant mix with new concepts to remain relevant and drive shopper traffic.

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For example, Parkway Parade recently brought in tenants such as Stuff'd, Ramen Hitoyoshi Lobster & Grill, Tim Hortons, Gyukatsu Kyoto Katsugyu and Supergreen. Also, brands including Shake Shack are expected to open later this year.

Savills highlighted that the suburban retail segment attracted strong investor interest in the latest quarter, as seen from the transactions of i12 Katong and White Sands. Keppel sold the Katong mall to Altallo for $372 million, while White Sands in Pasir Ris changed hands for $467 million, from Frasers Centrepoint Trust to Growth Capital.

In the Central Region, the limited availability of trophy assets supported capital values of retail assets, as demonstrated by the acquisition of Paragon. The freehold development on Orchard Road was acquired by CapitaLand Integrated Commercial Trust from Cuscaden Peak for $3.9 billion.

Overall, Singapore's retail property market is likely to stay resilient through the rest of the year, given healthy consumer spending and a firm labour market, according to Savills.

Its outlook is "positive but measured", projecting average passing rents for both Orchard Road and suburban malls to increase by 1–2% for the whole of this year.

Check out the latest listings for Orchard properties

## Chinese translation

> Translation model: openai_codex_cli

### 核心 Orchard 购物中心零售租金第二季度微升 0.3%；未来新增供应有限

Z 世代、Alpha 世代消费者的支出也在增加。Savills 预计 Orchard 和郊区购物中心平均租金今年可能上涨最多 2%

今年第二季度，Orchard 区核心购物中心的平均月租金环比小幅上涨 0.3%，至每平方英尺 23.70 新元，延续第一季度的温和涨幅。

房地产咨询公司 Savills Singapore 于 8月19日表示，这是基于其零售物业组合得出的数据。

核心零售板块的租赁需求仍受到奢侈品、美容、健康养生和体验式品牌支撑。

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此外，Savills 观察到，即便第二季度游客到访量同比下降，Orchard Road 的核心零售购物中心仍在吸引 Z 世代和 Alpha 世代的消费支出。

Savills Singapore 研究与咨询执行董事 Alan Cheong 指出，因此，针对这些年轻消费者的概念店可能会支撑此类空间的需求。

该公司执行董事、私人财富副主管兼零售主管 Sulian Tan-Wijaya 表示：“随着 Z 世代和 Alpha 世代日益推动零售消费趋势，我们注意到，Brandy Melville 和 Subdued 等面向这一年轻女性客户群体的时尚品牌表现良好。”

她补充说，零售商，尤其是时尚、美妆以及咖啡馆业者，如果其品牌叙事和产品服务能够与这一“日益具有影响力”的消费者群体产生共鸣，将有望受益。

与此同时，Orchard 区零售购物中心的空置率环比基本保持稳定，为 7.2%，较上一季度的 7.1% 略有上升。Savills 表示，这得益于持续需求和受限的供应管线。

Orchard 区的租赁需求继续集中于奢侈品牌、国际零售商和体验式概念，尤其是在 Orchard Road 沿线和核心市中心区域，租户仍在寻求旗舰店和较大面积空间，以加强品牌展示并更好地与顾客互动。

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在供应方面，该公司估计，约 309,000 平方英尺的净可出租面积计划于 2026 年完工，低于 474,000 平方英尺的五年平均水平。

到 2027 年，新增供应预计将进一步放缓至 241,000 平方英尺，约为历史平均水平的一半。

供应管线中超过 100,000 平方英尺的重点项目：

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*Savills 估算，基于 70% 至 75% 之间的效率率。来源：公司公告、URA、Savills Research & Consultancy。

“在新增供应有限的背景下，业主已加大资产提升和重建计划，以提升资产表现并适应不断变化的消费者偏好，”Savills 指出。

这些项目包括正在进行翻新的 Plaza Singapura 和 Nex，以及 HarbourFront Centre 的重建。

即使是未进行重大重建的购物中心，业主也在通过引入新概念刷新租户组合，以保持相关性并推动客流。

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例如，Parkway Parade 近期引入了 Stuff'd、Ramen Hitoyoshi Lobster & Grill、Tim Hortons、Gyukatsu Kyoto Katsugyu 和 Supergreen 等租户。此外，包括 Shake Shack 在内的品牌预计将于今年晚些时候开业。

Savills 强调，郊区零售板块在最新季度吸引了强劲的投资者兴趣，这可从 i12 Katong 和 White Sands 的交易中看出。Keppel 以 3.72 亿新元将 Katong 购物中心出售给 Altallo，而 Pasir Ris 的 White Sands 则以 4.67 亿新元由 Frasers Centrepoint Trust 转手给 Growth Capital。

在 Central Region，奖杯级资产供应有限支撑了零售资产的资本价值，Paragon 的收购即体现了这一点。Orchard Road 上这一永久地契项目由 CapitaLand Integrated Commercial Trust 以 39 亿新元从 Cuscaden Peak 收购。

Savills 表示，整体而言，鉴于健康的消费支出和稳健的劳动力市场，新加坡零售物业市场在今年余下时间可能保持韧性。

其展望为“积极但审慎”，预计 Orchard Road 和郊区购物中心今年全年的平均现行租金均将上涨 1–2%。

查看 Orchard 房产的最新房源