Retail leasing activity jumps 1.3 times q-o-q

• Retail leasing in Q2 2026 surged 1.3 times q-o-q, with strong activity across both malls and high streets. Domestic and international retailers, especially in the fashion, premium accessories and entertainment segments, showed growing interest.
• Net absorption was recorded at 0.37 million sq ft in Q2 2026, largely driven by new leases in completed malls in Suburbs. Leasing activity otherwise was constrained on account of diminshed vacancy in high quality malls across the city.

Mall inventory declines while strong leasing activity constrains vacancy

• The mall stock across the city declined to 15.1 million sq ft in Q2 2026, with one mall being downgraded in the Suburbs submarket.
• Robust leasing in premium operational malls where sizeable vacancy was present supported the overall mall vacancy declining by 240 bps q-o-q to just 5.5%.

Rents continue to show moderate growth q-o-q

• Rents increased moderately q-o-q, driven largely by premium malls where retailer demand and low vacancy is supporting the rental growth. Rents were also up 5.0% y-o-y in Q2 2026, reflecting this sustained market momentum throughout the year.
• Prime North submarket drove rent growth, recording the fastest increase across all submarkets. Strong investor demand for quality retail assets continued, with yields declining slightly.

Outlook: Retail market remains strong as malls transform into experience-driven destinations

• The retail market outlook continues to be positive. This optimism is driven by several key factors: increasing consumer expenditure, the entry of more international brands into the market, and strong investor interest for organised retail formats.
• Fashion retailers, food and beverage outlets, and entertainment segments remain the primary drivers of leasing activity in shopping centres. However, developers are adapting their approach to mall design offering experiences beyond shopping.