Dong Khoi Street, situated in the heart of downtown Ho Chi Minh City, has secured the 13th spot in global rankings for expensive commercial retail rents, as per a report released by Cushman & Wakefield on Tuesday. The average rent on Dong Khoi, spanning 630 meters in District 1, is currently around US$390 per square foot per year, marking a 17% increase from 2022 and holding the record for the highest rental price in Vietnam.
Trang Tien Street in Hanoi claims the second-highest retail rental price in the country at $334 per square foot per year, witnessing a remarkable 20% surge over the past year. Cushman & Wakefield reports an average increase of 4.8% in rents across prime retail destinations globally over the last 12 months.
The top five most expensive retail streets globally include Fifth Avenue in New York, Via Montenapoleone in Milan, Tsim Sha Tsui in Hong Kong, New Bond Street in London, and the Avenue des Champs-Élysées in Paris.
The 33rd edition of ‘Main Streets Across the World’ concentrates on headline rents in prestigious urban areas globally, particularly those hosting luxury goods stores. Rental values in this specific segment have shown relative immunity to additional discounts, incentive packages, and shared-risk rental models increasingly observed in global rental markets.
Dominic Brown, co-author of the report and head of international research in the Asia-Pacific region for Cushman & Wakefield, suggests that the recent surge in retail rental prices signifies positive momentum for the recovery of the retail industry in the near future. Despite new challenges, including global interest rate increases to counter inflation, Brown underscores that retail sales are steadily rebounding.