25 Jun 2024
The Retail Segment: Market Dynamics and Outlook
Property Insight

Economic Boost in Q1 2024

In the first quarter of 2024, Singapore's economy saw substantial growth fueled by significant events and international performances. The Singapore Airshow, held in February, along with concerts by Coldplay, Mayday, and Taylor Swift, attracted numerous visitors, contributing to economic expansion. The retail trade sector grew by 2.7% year-on-year, recovering from a 0.3% contraction in the previous quarter. This growth was driven by higher sales volumes of motor and non-motor vehicles. Similarly, the food and beverage services sector grew by 1.1% year-on-year, rebounding from a 1.5% contraction, driven by increased sales at food caterers, cafes, and food courts.

Retail Space Market Dynamics

Retail space prices increased by 1.8% in Q1 2024, up from 1.2% in Q4 2023, reflecting strong demand. Despite a reduction in the number of retail spaces from 85 units in Q4 2023 to 62 units in Q1 2024, the overall value of retail transactions also declined from $175.3 million to $107.8 million. However, the first four months of 2024 showed a positive trend, with a 23.9% year-on-year increase in retail space transactions and a 34.8% increase in total transaction value compared to the same period in 2023.

Significant Retail Transactions

Notable transactions in early 2024 included the sale of a unit at Royal Square at Novena for $11.0 million ($4,121 psf) and a ground-level unit at Lucky Plaza for $10.5 million ($15,242 psf). These transactions underscore the high value and demand for strategically located retail properties in Singapore.

Retail Rental Market

Retail rental rates saw a slight moderation of 0.4% in Q1 2024. The moderation in rental rates was influenced by evolving tenant demand, consumer behavior trends, and strategic pricing by property owners. Despite the overall moderation, the Outside Central Region (OCR) experienced a significant increase in median monthly rentals, rising by 10.6% quarter-on-quarter to $21.77 psf in Q1 2024. This growth highlights robust demand in suburban areas driven by increased consumer footfall and expanding retail activities.

Retail Space Occupancy and Vacancy Rates

The volume of retail rental transactions moderated by 21.5% quarter-on-quarter in Q1 2024, with the total leasing value also decreasing by 24.6%. The occupied retail space increased by 8,000 square meters, while the stock of retail space expanded by 19,000 square meters. Consequently, the island-wide vacancy rate of retail space rose to 6.7% from 6.5% at the end of the preceding quarter, indicating a slight increase in available retail space.

Outlook

The continued recovery in air travel and tourism is expected to support growth in tourism-related sectors, including retail trade and food & beverage services. The Singapore Tourism Board (STB) anticipates international visitor arrivals to reach between 15 to 16 million in 2024, generating $26.0 to $27.5 billion in tourism receipts. This influx of visitors is likely to drive up retail sales, particularly in key shopping districts and tourist areas. New hotel openings, enhanced experiences at integrated resorts, and a vibrant array of leisure activities will attract more visitors, increasing foot traffic and spending in retail establishments.

Overall, the anticipated growth in tourism, combined with strategic developments in the retail industry, presents a promising outlook for Singapore's retail sector in 2024.

Click here for the full report 

Prepared By: 

Mohan Sandrasegeran 

Head of Research & Data Analytics  

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16 Dec 2025
Hougang Central GLS Attracts Top Bid of $1,179 psf ppr

The tender for the Hougang Avenue 10 / Hougang Central GLS site attracted sustained developer interest despite a more measured bidding environment. The mixed use site, which allows for a residential and commercial development integrated with a bus interchange, drew 3 bidders, reflecting selective yet committed participation for large scale integrated developments. This level of interest mirrors the earlier Chencharu Close tender, suggesting that developers remain focused on quality and strategic positioning rather than volume driven bidding 

The top bid of $1.50 billion was submitted by Horizon Residential Pte. Ltd. under UOL together with Horizon Commercial Trustee Pte. Ltd. under CapitaLand, translating to $1,179 psf ppr. This offer narrowly edged out the second highest bid by just 2.1 percent, highlighting strong conviction and disciplined pricing among the top contenders. The close spread between bids indicates that developers share a broadly aligned view on the underlying value of this site, particularly given its scale, commercial component, and transport integration.

The relatively limited number of bidders should be viewed in the context of the project’s size and complexity. Large integrated developments require strong balance sheets, operational expertise, and long term capital commitment. As such, participation tends to be concentrated among developers with proven mixed use experience. The high absolute bid values suggest that participating developers are taking a long term view of Hougang Central’s role as a town centre anchor that can support both residential demand and sustained retail activity over time.

From a locational perspective, the site benefits from immediate adjacency to Hougang MRT station, which supports strong and consistent footfall throughout the day. This advantage is expected to strengthen further when Hougang becomes an interchange with the completion of the new line around 2030. The surrounding mature HDB catchment provides a ready residential base that enhances the commercial viability of the development, while the integrated nature of the project appeals to both homeowners and investors seeking convenience and accessibility.

Looking ahead, broader infrastructure and planning initiatives under the Master Plan 2025 further reinforce the site’s appeal. Improved connectivity from the Cross Island Line, planned upgrades to Hougang Sport Centre, proximity to schools and healthcare facilities, and access to recreational spaces collectively enhance liveability and long term value. 

Click

here

for the full report 

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email: mohan@sri.com.sg

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15 Dec 2025
Private New Home Sales in November 2025 Anchored by The Sen

Private new home sales in November 2025 moderated from the exceptionally strong performance seen in October, largely due to the absence of major new launches rather than a deterioration in underlying demand. Developer sales excluding executive condominiums reached 325 units, easing from 2,424 units in October. This moderation followed a sharp contrast in launch volumes, as October benefited from the release of 2,233 units, while November saw only 347 units launched, all of which came exclusively from a single project, The Sen.

Despite the quieter month, buyer activity remained well supported. The Rest of Central Region emerged as the dominant contributor, accounting for 66.2 percent of all private new home sales. This strong showing was directly linked to the launch of The Sen, which anchored market activity and became the focal point for buyers seeking well located city fringe homes. The Outside Central Region contributed 24.6 percent of sales, reflecting continued interest from buyers prioritising affordability and family sized layouts in suburban locations. 

At the project level, The Sen was the clear standout, achieving 77 units sold and leading the sales chart by a wide margin. As the final non landed private residential launch of 2025, it attracted sustained interest from both owner occupiers and investors, especially in a month with no competing new projects. Other RCR developments also recorded steady transactions. The Continuum and Bloomsbury Residences each sold 22 units, supported by their city fringe positioning. Overall, November’s sales distribution highlighted how buyers gravitated toward projects that offered either fresh market visibility or compelling value propositions when supply was limited 

On a year-to-date basis, new home sales excluding executive condominiums have shown a strong and sustained rebound in 2025. With November figures included, total developer sales reached 10,624 units in the first 11 months of the year. 

Click

here

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Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email: mohan@sri.com.sg

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12 Dec 2025
Key Trends Shaping the HDB Resale Market in 2026

The 2026 HDB resale market is poised for a more balanced and sustainable year, shaped primarily by a strong uplift in resale supply and steady underlying demand. As 2025 draws to a close, resale activity has moderated, influenced by expanded new flat launches and a much smaller cohort of flats reaching Minimum Occupation Period in 2025. Based on data from HDB and data.gov.sg, the first 11 months of 2025 recorded about 23,924 resale transactions, reflecting a 10.2 percent moderation compared to the same period in 2024.

The new flat supply landscape in 2025 played a significant role in shaping buyer behaviour. BTO launches rose slightly year on year, while Sale of Balance Flats supply expanded sharply to 10,252 units due to two SBF exercises conducted within the year. Standard flats made up the bulk of the BTO supply at 50.6 percent, underscoring HDB’s continued focus on broad accessibility. Prime and Plus flats, which accounted for 36.5 percent and 12.9 percent respectively, continued to attract households drawn to central locations and long term value potential, even as clawback rates were progressively refined. 

Demand fundamentals remain resilient as household formation stays steady and policy enhancements support right sizing among seniors. Findings from HDB’s latest Sample Household Survey also show more young families living near parents, boosting demand in established towns. Taken together, 2026 is expected to be a year of healthier balance, steady performance, and moderated price growth anchored by a significantly larger supply pipeline and stable demographic needs.

Click

here

for the full report 

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email: mohan@sri.com.sg

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