What: In Singapore, CapitaLand is redeveloping Tampines Mall a year after Isetan's closure, adding 16 new health and beauty, jewellery and fashion brands, while Chinese and other Asian F&B chains expand across its malls.

Why it is important: Beauty brands are taking large units in a mall that once hosted a department store, while Chinese and other Asian F&B chains fill space elsewhere in the portfolio. The tenants who win space in Singapore's malls are increasingly specialist brands rather than multi-category department stores.

Singapore's retail sales rose year on year in all three months of the third quarter, peaking at 5.3% in August, and rents are edging up. New retail floor space will stay well below the historic average through at least the end of the decade, and the largest project due over the next five years, Phase 1 of Tanjong Katong Complex, adds only 180,000sqft of net leasable area.

CapitaLand's retail and office REIT reported 97.3% retail occupancy, positive rent reversions of 4.6% and 84% tenant retention by leasable area. Shopper traffic rose 2.3% over nine months and tenant sales per square foot 2.1%. F&B closures were more than offset by openings from Luckin Coffee, Mixue and Heytea, alongside higher-end concepts from Italy, Korea, Malaysia and Japan.

At Tampines Mall, the upgrade advanced further, with large units for Sephora and Meilleur Moment and additional boutiques for Goldheart, Chanel Beauty and YSL Beauty. Population reached 6.21 million, mostly through foreign residents, and e-commerce has climbed above 18% of retail sales, absorbing some of the excess demand for space.

IADS Notes: The redevelopment of Tampines Mall follows Isetan's exit after three decades, which left the retailer operating only at Orchard Road and Nex, as reported by Inside Retail in November 2025. Channel News Asia in December 2025 described the divide behind such closures: owner-operators with prime Orchard Road positions, such as Tangs and Takashimaya, stay profitable, while rent-paying tenants such as Isetan, BHG and Metro come under mounting pressure. Investor appetite for prime space is strong, with Inside Retail in April 2026 reporting the sale of Paragon Mall to CapitaLand for more than $3 billion. Inside Retail in July 2026 reported that Metro will close its Paragon and Causeway Point stores after a US$8.8 million net loss, while Paragon's new owner reviews how to reconfigure part of the mall, including Metro's current space. On the demand side, Inside Retail Asia in October 2026 showed August sales up 1.6% year on year, with cosmetics leading, F&B services down 1.6% and department stores up 0.7–1.6%.

Singapore mall landlords see rents rise as new retail space stays scarce