\n<\/p>\n
The retail vacancy rate remained below 7% for the past three years.<\/strong><\/p>\n Singapore’s retail market remained broadly stable in the first quarter of 2026, with suburban malls continuing to outperform amid softer leasing demand in the Central Region, according to Savills.<\/p>\n The consultancy reported that islandwide retail vacancy held steady at 6.3% in Q1 2026, remaining below 7% for the past three years. While business closures created pockets of vacancy in secondary and less prominent central locations, suburban malls continued to benefit from stable catchment demand and necessity-driven spending.<\/p>\n Savills said this resilience supported net absorption of 140,000 sq ft during the quarter, reflecting sustained occupier confidence in well-located suburban retail assets.<\/p>\n Rental performance, however, softened. The Urban Redevelopment Authority’s retail rental index for the Fringe Area fell 1.5% quarter-on-quarter in Q1, accelerating from a 0.4% decline in the previous quarter and reaching a new record low. In the Central Area, rents slipped 0.2% quarter-on-quarter, ending three consecutive quarters of growth.<\/p>\n According to Savills’ basket of retail properties, average monthly rents for prime Orchard Road malls edged up 0.1% quarter-on-quarter to S$23.60 per sq ft, while prime suburban mall rents rose 0.2% to S$14.90 per sq ft.<\/p>\n<\/p><\/div>\n