- The Straits Times
Singapore’s Orchard Road is now the ninth most expensive retail street in Asia, after dropping one notch from last year.
In a report compiled by Cushman & Wakefield, Orchard Road also fell two places on the global ranking to 17th place in 2017.
With rents averaging at $302 (S$410) per square foot per year, rentals on Singapore’s main street are a far cry from Hong Kong’s Causeway Bay, which registered average rents of $2,725 per square foot per year.
Causeway Bay retains sky-high rents despite falling trend
Unsurprisingly, Hong Kong’s main retail street topped the list in Asia Pacific and came in second globally.
Despite this, the 29th edition of the Main Streets Across The World report said retail rents at Causeway Bay had actually fallen steadily over the past 12 months to June 2017.
“Lower rents are largely the result of the sharp decline in visitors from mainland China, which has prompted caution among many retailers, particularly at the upper end of the market.
“So far, with the exception of fast fashion, the impact of online retails has been limited due to consumer preferences for convenience and for handling merchandise,” it added.
Singapore retail driven by F&B
The real estate services company also said in its report that Singapore’s retail sales were generally up compared to a year ago, as F&B continued to be a major driver of activity.
With the push towards becoming a Smart Nation and the rise of e-commerce, many shopping centres have also invested heavily in improving the shopper experience.
The report added that in future, “the application of data analytics will continue to be critical for the survival of shopping centres and retailers” here.
New York retains its crown
Remaining at the top of the global list this year was New York’s Upper 5th Avenue, which had an average rent of $3,000 per square foot per year.
At third place was London’s New Bond Street, while Milan’s Via Montenapoleone and the Avenue des Champs Elysees in Paris came in at fourth and fifth place respectively.
In Asia Pacific, Causeway Bay was followed by Tokyo’s Ginza district ($1,200 psf/yr) and Sydney’s Pitt Street Mall ($1,000 psf/yr).
Myeongdong in South Korea and Bourke Street in Melbourne followed at fourth and fifth place.