Singapore prime retail rents rose 0.2% in Q2 despite cautious spending, whilst other city areas led H1 growth at 1.0%.

In Focus Commercial Property Retail Staff Reporter , Singapore Published: 30 minutes ago Photo from Cushman & Wakefield Prime rents rise 0.2% in Q2 despite cautious spending Other city areas led H1 growth, with rents rising 1.0%.

Singapore’s prime retail rents in Orchard and suburban locations rose 0.2% in the second quarter (Q2) of 2026 despite cautious consumer spending, with Cushman & Wakefield (C&W) expecting limited new supply to support the market through 2031.C&W's MarketBeat report said rental growth in the first half (H1) of the year reached 0.

5%, whilst rents in other city areas increased 0.3% in the quarter and 1.0% in H1.

Prime gross effective rents reached $36.58 per square foot (sq ft) per month in Orchard, $33.36 in suburban areas, and $21.

21 in other city areas.The rental gains came as retail sales grew 2.2% in the first five months of 2026, excluding motor vehicles, parts, and accessories.

A tight labour market and steady income growth supported household spending, but cost-of-living pressures are expected to push consumers towards more value-conscious purchases."Whilst necessity-based retailers should remain relatively resilient, discretionary retailers may face pressure as cost-conscious consumers curb non-essential spending," C&W said.The firm expects prime retail rents to grow 1.

0%-2.0% year-on-year in Orchard and suburban locations in 2026, and 1.5%-2.

5% in other city areas.Limited new supply is expected to support the outlook, with retail completions islandwide forecast to average 0.4 million sq ft a year through 2031, about half the historical average.

Most new supply is expected to come from suburban mixed-use developments, the report noted.The supply constraints are also supporting demand for retail space outside Orchard, with C&W saying occupiers are seeking "more cost-efficient locations amidst limited prime space in Orchard."Singapore also attracted several international retailers and first-time physical store entrants in H1 2026, including Molly Tea, Lotteria, Torikizoku, and Subdued.

Food and beverage operators accounted for 53% of prime mall openings in H1, whilst lifestyle and fashion retailers accounted for 16% and 14%, respectively.The market remains divided between stronger and weaker assets, with landlords focusing on asset enhancement to improve existing properties.Recent and planned upgrades at City Square Mall, West Mall, Hougang Mall, NEX, and Plaza Singapura reflect efforts to reconfigure space and improve the shopper experience."

The retail market remains a two-tier market, and these initiatives are expected to strengthen the competitive positioning of top-tier assets characterised by strong connectivity and curated tenant mixes, further widening market bifurcation," the report said. Follow the link for more news on Cushman & Wakefield Chart of the Day Also Read ESR-REIT sells Ang Mo Kio industrial property for $33.3m CapitaLand Ascott Trust revenue dips 7% in H1 Join Singapore Business Review community Your e-mail address A NOTE FROM SINGAPORE BUSINESS REVIEW If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes.

The shape of it depends on what you're trying to do. The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix.

We figure out the right combination by starting with your brief, not with our rate card. So if the question has been on your mind, here's the easy way to ask it. We'll tell you honestly whether we can help, and how.

It's a better use of everyone's time. Tell us what you're working on → Book a meeting | Or download the media kit (PDF) 240,000 senior readers quarterly in print Top 1,700 Singapore companies reached 7 markets across Southeast Asia Tell us what you're working on Email Message Submit Most Read 1. UOB upgrades 300,000 Visa cards to new premium tiers across ASEAN 2.

Allianz buys HSBC Life Singapore for $2.1b 3. Singapore jumps from 16th to 4th in global startup rankings in five years 4.

OCBC expands HNW succession programme with Hong Kong heirs 5. EGP Energy launches IPO of 18.8 million shares at $0.

51 each Top News Singaporeans use genAI to research insurance but balk at personalised advice Singaporeans use genAI to research insurance but balk at personalised advice Nearly half have used gen AI in choosing financial products. 13 hours ago ESR-REIT sells Ang Mo Kio industrial property for $33.3m ESR-REIT sells Ang Mo Kio industrial property for $33.

3m The net proceeds will be used to repay debts and finance potential acquisitions. Commercial Property 13 hours ag