Dong Khoi rents have fallen 6% to US$368 per square feet per year ($330 per square meter per month), pushing HCMC down a place from 2023, according to the “Main Streets Across the World 2024” report by property consultancy Cushman & Wakefield.
Italy’s Milan tops the list with a lease rate of $2,047, replacing last year’s leader, New York in the U.S.
London climbed up one place to third.
HCMC rents are higher than in Barcelona, Dublin, Amsterdam, and Kuala Lumpur, among others.
In Asia-Pacific, Hanoi’s Trang Tien Street ranks 18th with a rent of $300. Despite dropping a place, it leads Guangzhou, New Delhi and Bangkok, among others.
Retail rents remain high in prime locations in HCMC and Hanoi, though some landlords have reduced them to retain tenants amid persisting economic challenges.
Yet some prime retail properties have lost tenants in recent months.
Starbucks recently vacated its prime location at 13 Han Thuyen Street in HCMC’s District 1, where rents cost up to $30,000 per month.
Restaurant YEN Sushi has also shut down its Dong Khoi outlet.
Nguyen Quoc Anh, deputy CEO of property listing platform Batdongsan, said the demand for street-front retail space is declining as e-commerce grows.
Luxury brands are becoming increasingly selective in leasing retail space, with fashion brands in particular retreating from premium spots, he added.
Tran Pham Phuong Quyen, senior manager of retail leasing services at Savills HCMC, said brands look for prime locations on bustling central streets, large areas and wide frontages.
Besides, they want to be surrounded by other luxury brands, which is why many cluster along a few main streets in District 1, she added.
