Orchard Road ranks 12th most expensive retail street globally: Cushman & Wakefield
By Nur Hikmah Md Ali
/ EdgeProp Singapore |
Cushman & Wakefield: Orchard Road had maintained its position while jumping 2% higher from US$404 ($540) psf per year to US$431 ($576) psf per year (Photo: albert Chua/EdgeProp Singapore).
SINGAPORE (EDGEPROP) - Singapore’s Orchard Road has maintained its ranking as the 12th most expensive retail destination in the world, according to a report by Cushman and Wakefield.
The Main Streets Across the World report released on Nov 21 reveals that Orchard Road had maintained its position while jumping 2% higher from US$404 ($540) psf per year to US$431 ($576) psf per year.
New York’s Fifth Avenue tops the list despite recording a flat rental growth y-o-y, followed by Milan’s Via Montenapoleone, which displaced Hong Kong’s Tsim Sha Tsui to the third position.
Dominic Brown, the firm’s head of international research for Asia Pacific who also authored the report, says that the retail sector globally has continued to show resilience against “a wave of post-pandemic challenges”. This includes increased interest rates by central banks around the world and rising inflation, which have cut down consumer spending.
The resilience is reflected in the average 4.8% retail rental growth y-o-y globally. Based on the report, Asia Pacific experienced the strongest growth at 5.3%. The Americas come in second with 5.2% growth, followed by Europe with 4.2% growth.
Still, peak inflation levels exceeded these relatively strong rental growth rates. Rental levels in 55% of markets globally continue to remain below pre-pandemic levels, the report adds.
Hong Kong and Tokyo dominated the Asia Pacific region’s most expensive streets, accounting for six of the top eight rankings in the region.
Hong Kong’s main street shops Tsim Sha Tsui topped the list at US$1,493 ($1,996) psf per year, followed by another street, Causeway Bay, at US$1,374 ($1,837) psf annually.
Coming in third and fourth place are Tokyo’s Ginza and Omotesando at US$912 ($1,219) psf per year and US$798 ($1,067) psf per year, respectively.
Global prime retail rankings in 2023 (Photo: Cushman & Wakefield).
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