Orchard Road: the world's 25th most expensive retail street

Orchard Road (Singapore) has climbed one spot from last year to be named the 25th most expensive retail street worldwide, according to Colliers International's recent survey on retail rents.
Colliers revealed that globally, premier retail rents recorded higher year-on-year rental growth despite the bleak economic outlook.

New York's Fifth Avenue, Hong Kong's Queen's Road Central and Canton Road and London's Old Bond Street were named the world's most expensive retail streets.

"Retailers entering new markets — both developed and developing — continued to hedge risk by targeting the same one or two premier locations, generating heated competition and hefty rental growth in these space-constrained corridors," noted Colliers.

Among other Asian locations, Ginza-Chuo Street in Tokyo ranked 14th,while Nanjing Road West in Shanghai landed in 31st place. Most Asian locations either recorded growth or stayed the same.
Colliers commented that Singapore improved in ranking "despite prime rents in Orchard Road easing by 0.2 percent year-on-year in USD terms. In local currency terms, rents for retail space in Orchard Road were down by 0.5 percent year-on-year to S$459.60 psf per year as of Q1 2012."

Several new-to-market brands like Anne Fontaine, Franc Franc and Abercrombie & Fitch opened stores in Singapore recently, leveraging on the country's evolving status "as a cosmopolitan city on the world map, which has caught the attention of businesses worldwide that are looking for localities for their expansion plan," said Charles Ng, Director of Retail Services of Colliers International.
Looking ahead, Chia Siew Chuin, Director of Research & Advisory at Colliers International, reckons that "retail rents in Singapore will continue to be weighed down by competition for tenants, amid an increasingly-challenging operating environment."

"Nonetheless, sustained retail sales growth should continue to keep up retailers' confidence and prop up demand for retail space. Coupled with Singapore's status as a cosmopolitan city and a gateway to Southeast Asia, more retail brands or new-to-Singapore retailers will be attracted to make inroads into the Republic."