Orchard Road retail demand rises due to Gen Z and Gen Alpha

Retail demand along Orchard Road is being driven by Gen Z and Gen Alpha consumers, according to Savills Singapore. This trend persists despite a year-on-year decline in tourist arrivals during the second quarter of 2026.

Luxury, beauty, wellness, and experiential brands continue to seek flagship and larger-format stores in the prime city centre to enhance visibility. While the Orchard Area vacancy rate rose slightly to 7.2% in Q2 from 7.1% in Q1, average monthly rents increased by 0.3% quarter-on-quarter to S$23.70 per sq ft. Rents are projected to rise by up to 2% in 2026.

Supply is expected to remain limited, with approximately 309,000 sq ft of net lettable area due for completion this year, which is below the five-year average. New supply is forecasted to drop further to 241,000 sq ft in 2027. This scarcity has prompted landlords to undertake redevelopment projects, such as the revamps of Plaza Singapura, NEX, and HarbourFront Centre.