Thursday, October 26, 2006
[RealEdge] BT : Orchard Road is world's 13th most expensive shopping street
| Published October 26, 2006  | |
| Orchard Road is world's 13th most expensive shopping street It's up a notch from last year after rentals rise 13%
By JEAN CHUA
ORCHARD Road has become the world's 13th most expensive shopping street - up a notch from last year - after rental rates in the area rose more than 13 per cent. Average rental rates in Orchard Road have risen to $39 per square foot per month, said Cushman & Wakefield in its annual Main Streets Across the World report. This is up 13.2 per cent from last year, making Orchard Road the 9th most expensive retail street in Asia. 'The strong performance of the economy, increase in tourism and overall optimism in Singapore have led to increased consumer spending and contributed to the vibrant retail scene we have seen since the economy recovered in 2004,' said Donald Han, managing director of Cushman & Wakefield in Singapore. Global brands and local retailers are jostling for a prime presence in Singapore's key retail hub, he added. 'With the limited supply in Orchard Road, there is only one direction rentals can go - up.' Main Streets Across the World tracks the rental rates of 233 of the world's top shopping locations in 47 countries. Its global league table is drawn up by taking the most expensive location in each country. The report showed that rental rates in 97 per cent of the locations have stayed stable or risen in the past year. The data is based on rent on a standard unit with a frontage of six metres and depth of 25 metres. The region showing the highest rental increases is Asia, where rents are up 20 per cent in June 2006 from a year ago. The most expensive retail area in Asia is Causeway Bay in Hong Kong, where rents are at an average US$1,134 per square foot per year. Causeway Bay is also the second most expensive area in the world, retaining its 2005 spot. Tokyo's Ginza district stayed as the world's 5th most expensive area, with average rentals of US$652 per sq ft per year. Seoul's Myeongdong district fell from 8th place to the 9th, as rentals stood at US$376 per sq ft per year. The area which saw the largest increase was Khan Market, in New Delhi. It rose 17 places to become the 24th most expensive street in the world. Sebastian Skiff, Cushman & Wakefield's head of retail in Asia, said: 'With many of the markets still considered to be emerging economies for international retail, we foresee this upward trend in rents continuing this year, matched with an improvement in the quality of product.' The world's most expensive street was New York's 5th Avenue, which averages rentals of US$1,350 per sq ft per year. |
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