According to the latest report from Cushman & Wakefield, Dong Khoi Street in Ho Chi Minh City continues to maintain its position as Vietnam’s most expensive retail location, ranking 14th globally.
Statistics show that the monthly rent in this area reaches $330 per square meter. This represents a 32% increase compared to pre-pandemic levels, though it has decreased by 6% year-over-year due to fluctuations in the VND-USD exchange rate.
Trang Bui, Head of Cushman & Wakefield Vietnam, stated that Vietnam’s luxury retail market is showing strong growth momentum, attracting attention from numerous international brands. Dong Khoi Street, as one of the busiest streets in central Ho Chi Minh City, adjacent to many high-end hotels and famous tourist attractions, can attract many potential high-end consumers. Many luxury brands choose to open stores on Dong Khoi Street as an important base for entering the Vietnamese market. Opening stores on this street not only helps brands reach target customers but also maintains and enhances their luxury brand image.
Looking back at Vietnam’s retail industry development, when the first shopping centers like Trang Tien Plaza in Hanoi and Tax Trade Center in Ho Chi Minh City opened, the total supply of commercial retail space was only about 30,000 square meters. Cushman & Wakefield data shows that between 1996 and 2019, Hanoi and Ho Chi Minh City added an average of 97,000 square meters of retail space annually.
Between 2013 and 2019, the retail market experienced explosive growth, with new retail space additions reaching 195,000 square meters annually. However, over the past five years, supply growth has slowed, particularly in core areas driving rent increases.
On Trang Tien Street in Hanoi, current monthly rent is $300 per square meter, up 50% from pre-pandemic levels and unchanged from last year. According to the report’s Asia-Pacific market rankings, Trang Tien Street’s retail rental prices rank 18th.
The report also notes that brands from luxury to mass market are increasing their efforts to open physical stores in prime locations. This is because quality shopping experiences and product presentations are becoming increasingly important in the competition for consumer attention. While e-commerce plays a role in omnichannel strategy, physical brand presence remains key to connecting with consumers. Consequently, vacancy rates in premium retail locations remain consistently low, reflected in the rent levels retailers are willing to pay.
Key Points:
- Dong Khoi Street ranks 14th among world’s most expensive retail locations.
- Monthly rent $330/sqm, up 32% from pre-pandemic levels.
- Vietnam’s luxury retail market developing rapidly.
- Hanoi’s Trang Tien Street rent at $300/sqm, ranked 18th globally.
- Physical stores remain strategic priority for brands.
- Premium location vacancy rates remain low.
- Retail space supply growth slowing in Vietnam.
