What happened
Singapore has seen nearly S$8 billion of retail property sold since January, according to consultancy estimates. Savills puts major deals at S$7.9 billion, up from S$1.7 billion in the same period of 2025. CBRE, which counts private deals above S$10 million per asset, had S$7.4 billion on its books by September 22, close to double the full-year 2025 total.
Activity goes beyond the headline sales. Savills logged 42 retail deals of at least S$10 million each this year, already more than the 40 recorded across 2025. They range from shops in HDB public housing estates and conservation shophouses to strata units and entire malls.
The biggest deals
Cuscaden Peak sold the Paragon mall on Orchard Road to CapitaLand Integrated Commercial Trust (CICT) for S$3.9 billion, at an entry yield of 3.9%. Wharf offloaded Wheelock Place to a private fund run by Hongkong Land for S$1.1 billion, and Frasers Centrepoint Trust sold White Sands for S$467 million.
Scotts Square shows the other end of the market. Marketed at S$450 million in 2024 and later at S$380 million, it was sold this year for S$310 million to RB Capital and Royal Holdings. Jeremy Lake of Savills said the mall lost several big tenants during the pandemic, failed to replace them well and slid from there. The new owners are expected to overhaul it.
Sellers are not necessarily betting against retail. Clemence Lee of CBRE describes most exits as portfolio decisions such as taking profit, cutting concentration or freeing capital. Frasers sold White Sands to reduce leverage, while Wharf is pulling out of Singapore property altogether.
Why buy malls while shops close
Retailers are squeezed by higher wages, steep rents and unpredictable shoppers. Terry Wong of Colliers Singapore says the economics of the building and of the individual store have split apart. The investment thesis is that a vacated unit will be re-let and the rent will keep coming.
Net yields on retail assets run at about 4-5%, compared with roughly 3-4% for Grade A offices. Lake estimates borrowing costs had recently been around 2-2.5%, so the gap between property income and financing costs turned positive again and drew buyers back. The premium over offices partly pays for extra risk: shorter leases, exposure to consumer spending and hands-on management.
Rental growth is modest. Lake expects around 2-3% a year. Central region rents gained 0.6% in the second quarter after slipping by the same amount in the first, while islandwide vacancy edged up from 6.3% to 6.5%.
Risks the consultants flag
A good entry yield and an upgrade plan do not by themselves deliver the expected return. Wong Xian Yang of Cushman & Wakefield warns that a meaningful rise or more volatility in rates would narrow the spread and cool investor demand.
Alan Cheong of Savills thinks tenant churn, softer tourist spending and shoppers heading to Johor once the RTS Link opens are largely priced in. Less certain, in his view, are long-term threats: an ageing population, rising structural unemployment and stubbornly high labour and utility costs for retailers.
What it means for Bali
The Singapore deals show how professional investors value income property. They focus on net yield after costs, compare it with the price of money and ask how quickly a space can be filled again by a new tenant or guest.
The same discipline applies to a Bali villa. What counts is net income after fees, taxes and upkeep, not gross booking revenue. Scotts Square is also a warning: a property that stops attracting occupants can lose more value than its sellers expect.