|A corner of Dong Khoi street in HCM City. — Photo marry.vn
HCM CITY (VNS) — The southern economic hub of HCM City has been ranked 32nd on a list of the 65 best main streets in the world in Cushman & Wakefield's 27th "Main Streets Across The World" report.
The report tracks over 500 of the top retail streets around the globe, ranking the most expensive in each country by their prime rental value.
It shows that rents have risen in 35 per cent of streets around the world, despite the increased global uncertainty experienced over the last 12 months.
HCM City has rental costs of US$1,454 per square foot per year in what is described as "Prime High Street", which includes Dong Khoi, Le Loi, Nguyen Hue and Le Thanh Ton streets in District 1.
In Southeast Asia, the rate comes after Singapore's Orchard Road of $3,254. Thailand's Central Retail District has a rental cost of $1,212 per square foot per year.
Hong Kong's Causeway Bay leads in Asia with $23,178.
The world's most expensive road is Upper 5th Avenue (49th - 60th Sts) in New York, with $33,812.
According to the report, VietNam's growth of the retail market and entrance of international brands is underpinned by rising average incomes as well as more stable economic conditions, which are providing a boost to retail sales.
This is further bolstered by a growing e-commerce sector that is capturing a larger share of overall retail activity, although there remains an appetite for consumers to visit physical stores.
The liberalisation of the country's retail market in 2009 "saw the entrance of a number of foreign brands and a wave of expansion efforts by domestic firms in an attempt to maintain a presence in the market," the report said.
The most dynamic segments at the moment are F&B and consumer products.
"Within five to seven years, about 1.5 million square metres of retail floor space will enter HCM City's market, bringing the total surface area to 2.5 million square metres," said Vo Thi Phuong Mai, representative of Cushman & Wakefield's retail department.
She added that in the context of the country joining free trade agreements like the AEC and TPP, domestic retailers will face many difficulties as rental costs are the second most important factor in trading strategy, just after location.
"Foreign retailers with strong financial resources will be able to afford to rent space in the most prime locations in the market," Mai said. — VNS