Singapore’s position dropped in the list of the world’s most expensive shopping streets, according to Cushman & Wakefield’s Main Streets Across The World report published on Wednesday (15 November).
The latest report revealed that annual retail rents in the city-state’s famous Orchard Road have fallen to US$308 psf in 2017 compared to US$328 psf in the prior year. As a result, the country’s ranking fell from 8th to 9th in Asia and from 15th to 17th globally.
“This may be a result of improving sentiments in the region, which have uplifted the retail rents in emerging markets such as China and Indonesia in 2017, as well as the inability of Singapore-based landlords to ride on the wave of these sentiments due to confluence of factors such as high operating costs and manpower constraints,” said the property consultancy.
“The challenging Singaporean retail environment, coupled with elevated supply, has continued to exert downward pressure on retail rents in the city-state. The food and beverage industry continues to be a major driver amid consolidations of fashion and fashion accessory brands, while big-box retailers are upping their ante and investing heavily in their e-commerce platform to complement their brick and mortar presence.”
Meanwhile, New York’s Upper 5th Avenue and Hong Kong’s Causeway Bay retained their 1st and 2nd position in the global rankings with yearly rents of US$3,000 psf and US$2,725 psf respectively.
Completing the top five are London’s New Bond Street (US$1,719 psf), Milan’s Via Montenapoleone (US$1,433) and Avenue des Champs Elysees in Paris (US$1,407 psf).
The annual Main Streets Across The World report, now in its 29th edition, tracks 451 top retail streets around the globe and ranks the most expensive in 68 countries by prime rents using Cushman & Wakefield’s proprietary data.
This article was edited by Keshia Faculin.