At $390 per square foot per year ($350 per square meter per month), rents in Dong Khoi were higher than street rents in Munich, Athens, Dublin and Barcelona, according to the Global Main Streets Across the World Rankings report. by Market 2023,” published by US-based real estate consultancy Cushman & Wakefield.
Dong Khoi moved up one place from last year, with rents increasing by 17%.
Hanoi’s Trang Tien Street in the downtown Hoan Kiem district also ranks 17th, at $334 per square foot per year ($300 per square meter per month).
This is an increase of three places and 20%.
New York’s Fifth Avenue remains at the top of the rankings at $2,000 per square foot per year, followed by Milan’s Via Notenapoleone ($1,766) and Hong Kong’s Tsim Sha Tsui ($1,493).
Main roads in Ho Chi Minh City and Hanoi have seen rents fall slightly this year as landlords have provided reductions to support tenants amid economic difficulties.
However, rents in District 1 remained high, around VND200-500 million per month, and in Hoan Kiem District, they remained around VND100-300 million.
Overall, the commercial real estate market saw prices fall 15 to 25 percent year-on-year in Hanoi and 20 to 30 percent in HCMC, according to Dat Xanh Services, a real estate research unit of property developer Dat Xanh Group, which attributed the fall to economic challenges, rising inflation, tighter spending and the rise of e-commerce.
Cushman & Wakefield said sales of luxury goods continue to grow, but at a slower pace.
More than 95% of luxury brands reported profit growth in 2022 and early 2023, according to the release.
Despite numerous global challenges, the premium retail sector is expected to continue to perform well next year as high-end customers are rarely affected by rising costs, the statement added.
