lion. The flurry of activity follows an earlier deal in December 2025, when an entity linked to Elegant Group acquired Clementi Mall for about S$809 million. The Orchard retail belt CICT’s CEO Tan Choon Siang called the Paragon’s acquisition “a rare, premier freehold integrated development in the heart of Orchard Road”.  The deal is partly funded by CICT’s divestment of Asia Square Tower 2 for S$2.47 billion to Malaysian firm IOI Marina View, moving from offices to retail to double down on a luxury shopping corridor. Paragon’s portfolio consists of more than 190 brands, including Burberry, Prada, Bottega Veneta and Saint Laurent across six storeys.  That shift, however, is already raising questions on the ground. Retailers are bracing for the possibility that large acquisitions and the asset-enhancement work that often follows could translate into higher rents. Wong Shanting, head of research at Newmark, told local media that the wave of mall ownership changes could lead to higher retail rents in the near term, adding to the existing pressure many are facing.  Michael Leong, founder and CEO of Array Holdings and a 30-year veteran of the shopping centre industry, frames the situation starkly. “High rents, sparse and expensive manpower, rising operating costs – these factors have taken a toll on retailer performance, coupled with the double-edged sword of the strong Singapore dollar,” he said.  Singapore’s F&B sector saw an average of 307 establishment closures per month last year, up from 254 in 2024 and 230 in 2022 and 2023. The ratio of closures to openings is now higher than it was even during the pandemic. What’s emerging is a two-speed retail landscape. Prime destinations such as Orchard Road or Jewel continue to draw steady footfall, helped by tourist spending. Elsewhere, smaller or less prominent malls are more exposed, often relying on independent operators that are less able to absorb rising costs. This is where the suburban deals, including White Sands in Pasir Ris and i12 Katong in the East Coast, come into focus.  Suburban prime malls saw rents grow 0.3 per cent quarter-on-quarter in Q3 2025, supported by resilient non-discretionary spending and low vacancy rates of 6.6 per cent. Keppel, in announcing the i12 Katong sale at a reported 96 per cent occupancy rate, was selling from a position of strength.  “When completed, the transaction will unlock substantial cash that can be reinvested in higher-return opportunities aligned with the New Keppel, while allowing us to reduce debt and also reward our shareholders,” said Lee Kok Chew, head of Keppel’s accelerating monetisation task force.  Constrained retail supply  One factor working in the landlord’s favour is that Singapore is about to enter a period of unusually thin new supply. New retail supply islandwide is projected to average just 0.3 million square feet annually from 2026 to 2029, less than half the 10-year historic norm. Large projects are few and distant: Bukit V Mall and the Tanglin Shopping Centre redevelopment will not come online until 2028 at the earliest. With little room to expand physically, landlords are turning inward, focusing on how to extract more value from existing space. Experiential retail has become the main lever. CICT, for instance, recently announced a S$160 million commitment to upgrade Plaza Singapura and The Atrium@Orchard. The works will run from mid-2026 through late 2028, aiming to create more experiential retail and dining areas, integrate greenery and extend the outdoor park experience indoors. The billions flowing through Singapore’s shopping centre market are a vote of confidence in its economic fundamentals. The question that should sit alongside that confidence is whether it extends to the people turning up every day to run the shops. Further reading: SCN Big Guns 2026: Australian shopping centres’ sales growth ranked