Dong Khoi Street in downtown Ho Chi Minh City has been ranked 13th globally for expensive commercial retail rents, according to a Cushman & Wakefield report released on Tuesday.
The real estate services company said that the average rent on Dong Khoi – a 630-meter-long thoroughfare in the heart of the city’s District 1 – currently sits at approximately US$390 per square foot per year, a 17-percent increase from 2022.
This reflects the highest rental price in Vietnam.
Hanoi’s Trang Tien Street boasts the country’s second-highest retail rental price at $334 per square foot per year, a whopping 20-percent jump from one year prior.
According to Cushman & Wakefield, rents across global prime retail destinations have risen by an average of 4.8 percent over the past 12 months.
The top five globally most expensive rents for prime retail streets are Fifth Avenue in New York, Via Montenapoleone in Milan, Tsim Sha Tsui in Hong Kong, New Bond Street in London, and the Avenues des Champs-Élysées in Paris.
|Trang Tien Plaza on Trang Tien Street in Hanoi, Vietnam. Photo: Tuoi Tre
The 33rd edition of ‘Main Streets Across the World’ focuses on headline rents in retail locations within the most prestigious urban areas worldwide, many of which host luxury goods stores.
The rental values in this specific segment have been relatively immune to additional discounts, incentive packages, and shared risk rental models that have become more prominent in global rental markets.
Dominic Brown, co-author of the report and head of international research in the Asia-Pacific region for Cushman & Wakefield, noted that the recent surge in retail rental prices indicates a positive momentum for the recovery of the retail industry in the near future.
Despite facing new challenges, including interest rate increases implemented by central banks worldwide to curb the ongoing inflation cycle, Brown emphasized that retail sales continue to rebound.