Retail Spaces in Neighbourhood Malls — Still a Good Investment?

Neighbourhood malls and suburban retail spaces remain a key part of Singapore’s retail scene — especially as more people live, work, and shop closer to home.

Suburban Retail = HDB Retail

In Singapore, most suburban retail spaces are located within HDB estates — either in heartland malls or ground-floor HDB retail shophouses. These retail spaces cater directly to residential catchments and everyday needs such as F&B, groceries, salons, clinics, and tuition centres.

Heartland retail spaces like this HDB shopfront remain the backbone of Singapore’s neighbourhood economy.

The Local Advantage

With hybrid work and lifestyle shifts, consumers continue to frequent their neighbourhoods instead of heading to downtown malls. This consistent, convenience-driven foot traffic keeps HDB retail spaces and suburban malls relevant and resilient.

A Tale of Two Retail Classes: HDB vs Private Shophouses

Recent data from Huttons (2Q 2025) shows that while private shophouse transaction volumes increased slightly quarter-on-quarter, HDB retail units remain the steady performers in terms of leasing stability and affordability. Districts 8 and 15 — both strong suburban areas — made up half of total shophouse transaction volume in 2Q 2025, with prices mainly below $10 million.

Modern retail and commercial spaces offer a polished image and premium facilities — ideal for clinics, service providers, and lifestyle brands.

Key Investor Takeaway

For long-term investors, suburban HDB retail units offer:

• Lower entry prices than private shophouses

• Stable local demand from surrounding residents

• Predictable returns in mature estates

  
  

Meanwhile, private shophouses remain a more exclusive and capital-intensive segment, often influenced by boutique hospitality and F&B trends.

In short, suburban retail — especially HDB-based — remains a practical, defensive, and community-driven investment choice amid shifting consumer habits.