Believe it or not: Prime Orchard Road rents are surprisingly cheap

Find out where Asia's highest retail rents can be found.

Orchard Road may be Singapore’s most upscale shopping district, but a new report released today by Colliers shows that retail rents in the area are still way cheaper compared to other prime shopping districts in the region.

At US$348 per square feet per year, Orchard Road was ranked as the seventh most expensive shopping district in Asia in terms of retail rents.

However, this figure is dwarfed by three districts in Hong Kong which clinched the top three spots in the list. Hong Kong’s Queen’s Road has the highest rents in the region at US$2,073 psf per year, immediately followed by Canton Road at US$2,011 per year, and Causeway Bay at US$1,103 psf per year.

In fourth place is Ginza-Chuo street in Tokyo at US$573 psf per year, followed by West Nanjing Road in Shanghai at US$406 psf per year. In sixth place is Wanfujing in Beijing at US$361 psf per year.

Khan Market in Delhi is in eighth place at US$249 psf per year, followed by Tianhe District in Guanzhou at US$196 psf annually. In tenth place is Beijing’s CBD, where retail rents are pegged at US$159 psf per year.  

“As a gateway market to Southeast Asia, Singapore remains a desirable market for new brands and an attractive destination for international occupiers. However, despite the demand for space by new stores and food and beverage (F&B) outlets, the retail environment is challenging due to rising costs, shrinking profits and a tight labour market,” noted Chia Siew Chuin, Director of Research & Advisory at Colliers International.

The world's most expensive retail rents can be found in New York's Fifth Avenue, where retail space goes for a whopping US$3,550 psf per year.