Tuesday, July 8, 2025
Singapore has firmly positioned itself at the forefront of Asia’s luxury retail scene, outpacing established markets such as China, Japan, and South Korea in the number of new high-end store openings. Driven by a strong economy, investor-friendly policies, and growing demand from both locals and tourists, the city-state is quickly becoming the top choice for global luxury brands. In 2024, it secured the third spot among 32 Asia-Pacific cities outside mainland China for new luxury store launches, as reported by Savills. This impressive growth is fueled by a rising population of affluent individuals, steady increases in household earnings, and a notable 5% year-over-year rise in tourist shopping expenditure—cementing Singapore’s reputation as Southeast Asia’s most stable and lucrative destination for premium retail.
Singapore’s luxury sector is outperforming much of the world, with total luxury sales projected to hit S$13.9 billion (US$10.9 billion) in 2025. This represents a 7% growth over the previous year, putting the city-state ahead of major regional markets like Japan, China, and South Korea, according to data from Euromonitor International.
This growth trajectory puts Singapore on pace to reclaim its pre-pandemic peak of S$14.7 billion by 2026, a remarkable recovery and expansion in a time when many global markets are softening under economic pressure.
Luxury Brands Deepen Investment in Singapore
As demand continues to rise across categories—from fine jewelry and timepieces to high fashion and luxury beauty—global brands are intensifying their presence in Singapore. Several luxury retailers have opened exclusive boutiques and experiential spaces to engage the city’s sophisticated clientele.
One renowned French jeweler has launched a signature boutique and exhibition space at a historic Singapore hotel. Similarly, a globally recognized Swiss luxury watchmaker recently unveiled its first Southeast Asian flagship, also located in the same hotel, featuring residential-style interiors and a luxury café that merges international and local flavors.
Meanwhile, a prominent shopping destination in Singapore’s downtown has become a center for luxury beauty activations. It hosted 21 high-end pop-up experiences this year, showcasing global fashion and beauty houses including Chanel, Dior, and Gucci.
A Small City with Big Luxury Footprint
Although Singapore is compact in size—measuring just 280 square miles with a population of six million—it claimed the third-highest number of new luxury retail openings among 32 Asia-Pacific cities outside mainland China, according to a study by real estate firm Savills.
This impressive performance highlights how the city’s economic resilience, political stability, and openness to international investment make it a prime location for high-end retail. These factors, along with a robust infrastructure and high-quality living standards, attract both wealthy individuals and global brands seeking strategic market access in Southeast Asia.
A Growing Base of Wealth and Spending
Singapore’s status as a wealth hub is further underscored by the World’s Wealthiest Cities Report 2025, which ranks the city as the fourth wealthiest globally. The report notes the presence of 242,400 millionaires, along with hundreds of centi-millionaires and several billionaires, solidifying its role as one of the world’s top destinations for affluent residents.
Alongside its wealthy base, median household employment income has consistently risen over the past five years, boosting domestic luxury spending. Simultaneously, the surge in international tourism is fueling growth, with inbound travelers spending S$3.9 billion on retail purchases between January and September 2024—reflecting a 5% rise compared to the same period the previous year, based on official data.
Strategic Gateway for Southeast Asia Expansion
As luxury brands face slower sales in traditional markets such as China, Singapore provides an ideal alternative—a stable, affluent gateway into Southeast Asia. With its pro-business policies, efficient regulatory environment, and global connectivity, the city is now widely seen as a strategic base for regional operations.
The luxury sector in Singapore benefits from a dual demand stream: local high-net-worth individuals with consistent purchasing power and high-spending tourists drawn to the city’s exclusive retail experiences. This combination positions Singapore as a rare success story amid the broader luxury market’s turbulence.
Challenges on the Horizon
Despite the strong momentum, Singapore’s luxury market is not without constraints. Real estate remains one of the primary barriers to further growth. According to Savills, although Singapore ranked fifth globally among top-tier cities for luxury store openings, premium retail space is becoming increasingly scarce.
This could pose limitations for future brand expansions, particularly in a city where central locations are in high demand and development opportunities are limited. Furthermore, new projections suggest that net millionaire inflows to Singapore in 2025 may slow to 1,600 individuals, less than half of the previous year’s figure—even though global migration among wealthy individuals is expected to rise.
Singapore Remains a Luxury Stronghold
Despite these emerging challenges, Singapore remains a bright spot in the global luxury landscape. Its continued economic strength, robust tourism recovery, and growing population of affluent consumers ensure a solid foundation for ongoing growth.
With both domestic and international demand rising, and brands investing heavily in experience-based retail concepts, Singapore’s luxury industry is set to remain a central force in the region—proving that even a compact city can lead a global sector through innovation, stability, and strategic vision.
