Which tops Vietnam’s most expensive retail streets

Dong Khoi street ranked 17th with rents of $3,724 per square meter per year in 2025, down 6% from the previous year when it placed 15th, according to Cushman & Wakefield’s global ranking of prime retail streets.

Retail rents on prime high streets worldwide rose 4.2% on average, with 58% of markets recording growth, underscoring the continued importance of flagship physical locations despite the rapid expansion of e-commerce.

According to Dominic Brown, head of international research at Cushman & Wakefield, flagship retail locations are benefiting from stable economic growth, easing cost-of-living pressures, and a recovery in discretionary consumer spending.

However, retail market performance has been uneven. While some cities recorded double-digit rental growth, others faced downward adjustments, highlighting a widening gap in which only truly prime streets capable of generating strong foot traffic and brand value continue to command higher rents.

Across the Asia-Pacific region, rental growth slowed to 2.1% in 2025. Behind that average lies significant divergence: parts of India and Japan saw double-digit increases on key shopping streets, while Hong Kong and several Southeast Asian markets faced continued pressure.

Within this context, Vietnam has been identified as a market influenced by economic and geopolitical factors, although its luxury retail segment has shown resilience.

Vietnam’s prime retail streets

Unlike several fast-growing markets, street-front retail rents in Vietnam declined overall in 2025, mainly in mid-tier locations and secondary streets. Prime central streets, however, largely maintained their appeal.

In Hanoi, retail rents on Trang Tien street fell about 7% year-on-year to $3,358 per square meter per year. By contrast, retail podiums within luxury hotels and high-end shopping centers around the former Hoan Kiem district saw rents rise about 4%.

The divergence reflects a shift in strategy among international brands, which increasingly seek retail spaces that meet global standards in terms of floor area, ceiling height, façade design, and operational infrastructure rather than simply securing street frontage.

The area surrounding Hoan Kiem Lake - particularly Trang Tien street, Ngo Quyen street and Ly Thai To street - remains the core luxury retail hub of the capital, although the supply of large, high-quality spaces suitable for luxury brands remains limited.

In Ho Chi Minh City, prime streets in the fomer central District 1 area such as Dong Khoi street, Le Loi street and Nguyen Hue boulevard continue to attract high-end retailers.

The launch of Ho Chi Minh City Metro Line 1 is expected to boost foot traffic in the downtown core, potentially supporting retail rental growth in the coming years.

According to Hoang Nguyet Minh, managing director of Cushman & Wakefield Vietnam, demand for luxury retail space is rising rapidly due to limited supply and growing interest from brands from France, Italy and South Korea.

In Cushman & Wakefield’s global ranking of prime retail streets, Dong Khoi street ranked 17th with annual rents of $3,724 per sqm/year in 2025, down 6% from the previous year when it placed 15th.

Global rankings highlight symbolic retail streets

The firm’s report, Main Streets Across the World, shows that central shopping streets hosting luxury brands remain a key barometer of global retail health.

In 2025, New Bond Street in London became the world’s most expensive retail street for the first time, with rents reaching $24,008 per sqm/year, up 22% year-on-year. The street overtook Via Montenapoleone in Milan and Upper Fifth Avenue in New York City in the global ranking.

The figures highlight not only commercial demand but also the symbolic value of iconic retail streets, where brands sell not just products but experiences, prestige and heritage.

Challenges for Vietnam’s retail streets

The example of New Bond Street raises the question of whether Vietnam could develop a similarly iconic retail street with regional influence.

Currently, prime streets in Vietnam face three major limitations.

First is a lack of planning consistency, as many central streets remain a mix of residential buildings and older structures with inconsistent architecture and retail layouts.

Second is limited retail space. Luxury brands typically require large floor areas and wide storefronts, while traditional shophouses often cannot accommodate such requirements.

Third is dependence on tourism, as luxury retail demand is closely tied to international visitor flows. Any disruption in tourism can directly affect retail performance.

At the same time, the scarcity of high-quality retail space can support price growth in prime locations.

Urban planners and analysts say that developing a flagship retail street should be viewed not only in terms of rental value but also as a strategic component of urban development.

With integrated planning that combines public transport, pedestrian zones, urban design and cultural activities, Vietnam’s central streets could become a catalyst for enhancing the international profile of its cities and strengthening their position on the regional retail map.