In addition, new completions are expected to taper further in 2027 before a fresh wave of supply from major redevelopment projects comes on stream from 2028 onwards. This includes projects from the redevelopment of Tanglin Shopping Centre and Tanjong Katong Complex.
Retail rents along Orchard Road and in suburban malls are expected to rise by up to 2% this year, according to estimates by Savills Research. The projected increase is largely underpinned by a tighter retail supply pipeline despite weaker-than-expected demand, amid potential inflationary pressures stemming from the Middle East conflict that could erode consumer purchasing power.
The pipeline supply of retail space is projected to decline to approximately 427,000 sq ft of net lettable area (NLA) in 2026, lower than the higher five-year historical average of 474,000 sq ft, says Savills Research in its latest retail report, released May 20.
