Published on
November 12, 2025
The retail market in Singapore has continued to show resilience in the third quarter of 2025, bolstered by the growth in tourism. With nearly 13 million international visitors welcomed by the end of Q3, the retail sector has seen a steady increase in rental rates and retail occupancy across key districts. Key areas like Orchard Road and Scotts Road, known for high-footfall traffic, have seen a modest rise in rents, benefiting from the influx of tourists. With strong projections for tourism receipts and international arrivals, the retail market is expected to thrive further in the coming months. In this article, we will dive deep into how tourism is lifting Singapore’s retail rents and what it means for shoppers and retailers alike.
Strong Growth in Tourism Continues to Support Retail Market
As we head toward the final months of 2025, Singapore’s tourism industry continues to break records. By the end of Q3, the country welcomed 12.9 million international visitors, a significant increase compared to the same period last year. This influx of tourists is a key driver for the thriving retail market. The growth in foot traffic is directly contributing to the stability of retail occupancy rates, which have held steady at 93.1% across the island.
This positive trend in tourism is expected to continue, with international visitor arrivals projected to reach between 17 million to 18.5 million by the end of 2025. As tourists flock to the island’s world-class shopping districts, retail businesses are reaping the benefits, especially in areas like Orchard Road and Scotts Road, which are notorious for high consumer traffic.
Retail Rent Growth Amid Positive Tourism Outlook
In the third quarter of 2025, retail rents along the popular Orchard Road and Scotts Road saw a slight increase of 0.5% compared to the previous quarter. With rents now at $41.80 per square foot, these areas continue to remain attractive for retailers, despite the modest increase. This is largely due to the high volume of both local shoppers and international tourists who frequent these locations.
The rise in rents reflects the growing demand for prime retail space in Singapore’s central districts, driven by the tourism boom. As foot traffic increases, retailers are willing to pay a premium to maintain visibility in these high-traffic zones. For tourism-dependent businesses, this is an encouraging sign, indicating that the retail market is bouncing back after the challenges faced during the pandemic.
The Impact of International Visitors on Singapore’s Retail Landscape
The presence of international tourists has played a significant role in shaping the retail landscape in Singapore. In particular, tourists are driving demand for both luxury and local brands, with many shoppers flocking to high-end malls and shopping streets like Orchard Road. This, in turn, has helped retailers in these areas maintain occupancy and continue to thrive despite fluctuations in other sectors of the economy.
In addition to the growth in visitor arrivals, tourism receipts have also surged. Singapore is expected to see between $29 billion to $30.5 billion in tourism spending by the end of 2025, further boosting the retail market. With the steady demand for retail space, landlords and retailers are optimistic about the future of Singapore’s shopping scene.
Key Factors Driving Retail Leasing Activity
In the third quarter of 2025, the retail leasing activity in Singapore was primarily driven by relocations and space optimisation rather than new market entrants. Many businesses are looking to optimise their retail spaces to better accommodate the influx of customers. This trend is particularly noticeable in popular shopping areas like Orchard Road and Scotts Road, where space is at a premium.
For retailers, optimising space is crucial to meet the growing demand without overextending their budgets. The ongoing trend of downsizing in some areas and expansion in others reflects a strategic approach to aligning retail operations with the increasing footfall. Retailers are adjusting to the dynamics of a post-pandemic world, which requires flexibility and adaptability to meet changing consumer expectations.
Tips for Shoppers and Retailers in Singapore
For shoppers, this is an exciting time to visit Singapore’s retail destinations. With more tourists flocking to the island, there’s a wide range of shopping options available, from luxury brands to local treasures. However, visitors should keep in mind that prices in popular areas like Orchard Road may be slightly higher due to the increasing demand for retail space.
Retailers should take note of the growing opportunities presented by the influx of international tourists. It’s important to optimise store layouts, provide seamless shopping experiences, and embrace space efficiency to cater to the high volume of foot traffic. Additionally, staying ahead of consumer trends and adapting to new retail technologies can make all the difference in staying competitive in the tourism-driven market.
What Lies Ahead for Singapore’s Retail Market?
Looking ahead, the retail market in Singapore is set for continued growth as tourism remains a key pillar of the economy. With projections for international visitor arrivals and tourism receipts steadily increasing, retailers can expect more opportunities in the coming quarters. Areas with high tourist footfall, such as Orchard Road and Scotts Road, will remain prime locations for businesses seeking to attract international shoppers.
For tourism-dependent businesses, 2025 promises to be a year of growth and opportunity, as rising rents and increased foot traffic fuel a vibrant retail scene.
