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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Property Insight
15 Apr 2026
Developer Sales Jump to 1,937 Units in March 2026 on Surge in New Launches

Developer sales staged a strong recovery in March 2026, with a total of 1,937 units sold including Executive Condominiums (ECs), a significant increase from the 266 units transacted in February. This marks the first time this year that monthly sales have crossed the 1,000-unit threshold, signalling a meaningful pickup in primary market activity following the seasonal lull during the Chinese New Year period.

The rebound in sales was largely driven by a corresponding increase in new project launches. Developers released 1,615 units in March, a substantial rise from the limited supply seen in February. Key projects such as Pinery Residences, Rivelle Tampines and River Modern were major contributors, collectively accounting for about 76.9% of total transactions. This highlights a clear trend in the current market environment where buyer demand remains intact, but is closely tied to the timing, quality and positioning of new launches.

The strong performance of these projects reflects how well calibrated offerings continue to resonate with buyers. In particular, Pinery Residences and Rivelle Tampines each recorded over 500 units sold, underscoring the continued strength of demand in the Outside Central Region (OCR), where pricing remains relatively accessible and is supported by first time buyers and upgraders. At the same time, River Modern’s robust take up, with 416 units sold at a median price of about $3,220 psf, points to sustained interest within the Core Central Region (CCR). 

Looking ahead, the momentum observed in March is expected to carry into the coming months, supported by a pipeline of upcoming launches such as Vela Bay and Tengah Garden Residences. As more projects enter the market across both established and emerging precincts, transaction volumes are likely to remain supported by genuine demand, albeit at a more calibrated pace.

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for the full report:

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email: mohan@sri.com.sg

Property Insight
15 Apr 2026
Hoi Hup Tops Miltonia Close EC Site at $732 psf ppr

The tender for the Executive Condominium site at Miltonia Close has concluded with a total of 3 bidders, with Hoi Hup Realty Pte Ltd emerging as the top bidder with an offer of $340.9 million, translating to $732 psf ppr. While the number of bidders is more selective compared to some earlier tenders, it continues to reflect steady developer interest in well located EC sites, particularly within established residential areas.

The top bid is about 7.8% lower than the recently awarded Woodlands Drive 17 GLS site, which achieved $794 psf ppr. Rather than signalling a pullback, this difference points towards a more measured and calibrated approach by developers. With a growing pipeline of EC sites in the North, including parcels in Woodlands, Sembawang, Canberra Drive and Sembawang Drive, developers are likely pacing their land acquisitions more carefully. This reflects a more forward looking strategy, where developers are balancing immediate opportunities with the need to remain competitive within an expanding supply landscape. 

At the same time, the Miltonia Close site presents a compelling proposition from a locational and lifestyle perspective. Situated near Lower Seletar Reservoir and within a quieter residential enclave, the site is well positioned to appeal to buyers who prioritise a more tranquil and nature oriented living environment. This suggests that the future development may attract a more defined buyer profile, particularly families and genuine owner occupiers, rather than those driven primarily by proximity to MRT connectivity or commercial nodes.

From a broader market perspective, the EC segment continues to be supported by a stable base of upgrader demand, especially from HDB households seeking to transition into private housing in a more accessible manner. This underlying demand has remained resilient, as seen in recent launches such as Rivelle Tampines, which recorded strong take up rates when projects are well positioned in terms of pricing and attributes.

Looking ahead, the EC market is entering a phase of greater supply visibility, following the ramp up in Government Land Sales supply. This is a positive development for the market, as it supports a more balanced and sustainable environment. With a more consistent pipeline of projects, price movements are likely to become more measured and closely aligned with underlying demand fundamentals, rather than being driven by supply constraints.

Overall, the tender outcome reflects a market that is evolving in a more balanced and sustainable manner. While developers remain active, there is a greater emphasis on discipline, positioning and long term planning. At the same time, demand fundamentals for ECs remain intact, supporting the outlook for steady absorption in well located and appropriately priced developments such as Miltonia Close.

 

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Prepared By: 

Mohan Sandrasegeran 

Head of Research & Data Analytics 

  

  

Email:

mohan@sri.com.sg

  

Property Insight
15 Apr 2026
Kallang Close GLS Draws 4 Bidders with Top Bid of $1,415 psf ppr

The Government Land Sales tender for the Kallang Close site has closed with Frasers Property and Mitsubishi Estate (via MJR Investment) emerging as the top bidder at $1,415 psf ppr, narrowly ahead of City Developments Limited. The relatively tight spread between bids reflects a broadly aligned view among developers on the site’s underlying value and long-term potential. In total, the site attracted 4 bidders, with the outcome broadly in line with recent GLS tenders, including the Tanjong Rhu site which was awarded at $1,455 psf ppr. 

The results point to continued confidence in well-located city fringe sites, although developers remain measured in their bidding approach. The ongoing ramp-up in the GLS programme has contributed to a more visible supply pipeline, allowing developers to adopt a more disciplined stance without the need to bid aggressively for individual sites.

At the same time, rising construction costs driven by geopolitical developments, particularly increases in diesel and bitumen, are beginning to influence development considerations. This has likely been factored into bids, especially for sites like Kallang Close which come with additional infrastructure and placemaking requirements. The presence of joint venture participation also reflects a growing trend of developers partnering to manage costs and risks more effectively. 

Looking ahead, the site is expected to yield about 470 residential units and could tap into underlying demand in the Kallang and Boon Keng area, where new private housing supply has been relatively limited. Over time, the development may contribute to the transformation of the Kallang River corridor into a more vibrant waterfront residential cluster. 

Click

here

for the full report:

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email: mohan@sri.com.sg

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