[News Space=Reporter seungwon lee] Seoul's Myeong-dong was revealed to be the 9th most expensive place to rent among major city commercial districts around the world.

On the 21st, global real estate consulting firm Cushman & Wakefield Korea announced in a report titled 'The World's Major Retail Districts' that analyzed the rents of commercial districts in 138 major cities around the world that Myeongdong's average annual rent (based on 1㎡) was 10,319,652 won, ranking 9th. Compared to last year, the rent went up 3%, but the ranking remained the same.

First place went to Via Montenapoleone in Milan, Italy, at approximately 30,703,966 won, up 11% from last year. In addition, Via Montenapoleone in Milan, which ranked second last year, has surpassed New York’s Upper Fifth Avenue to become the most expensive commercial district, with rents rising by approximately 30% over the past two years.

This is the first time that Europe has taken the top spot globally in the report. Now in its 34th year, the report uses proprietary data from Cushman & Wakefield to analyze rents in 138 major cities around the world, many of which are linked to the luxury sector.

New York’s Upper Fifth Avenue, which was pushed down to second place, had the same rent as last year at 29,998,989 won. London’s New Bond Street (26,429,110 won) came in third, up 13% from the previous year. Tsim Sha Tsui in Hong Kong (24,104,188 won) came in fourth, the Champs-Élysées in Paris, France (19,229,352 won) came in fifth, and Ginza in Tokyo, Japan (17,789,401 won) came in sixth.

Bahnhofstrasse in Zurich ranked 7th, Pitt Street Mall in Sydney 8th, and Kohlmarkt in Vienna 10th.

Among the 138 areas surveyed, 57% (79 places) had increased rents compared to the previous year. 14% (19 places) had decreased rents, and 29% (40 places) had similar rents to the previous year. As a result, the global average rent increased by 4.4%.

By region, North America had the highest growth rate at 8.5%, driven by rent increases in the US of around 11%. Europe and Asia Pacific followed at 3.5% and 3.1%, respectively. Major commercial districts have largely weathered the economic challenges triggered by interest rate hikes in 2022 and 2023. The rate hikes have led to a surge in the cost of living, a decline in consumer sentiment, and a slowdown in economic growth. However, retail is now expected to benefit from the upcoming rate cuts, which will help to revive the economy, ease the burden of living expenses, and increase real wages.

The economic performance of the Asia Pacific region is closely reflected in rents. Based on India’s strong economic growth, Indiranagar 100 Feet Road in Bengaluru led the region’s rent growth with a year-on-year growth of 32%. Rent growth across 16 commercial districts in India averaged 9% year-on-year.

Southeast Asian economies also performed well, supported by robust domestic consumption, with rents growing by up to 7% in Jakarta and 1-5% elsewhere. Despite the slowdown in growth, rents in Japan rose 25%, particularly in Ginza, while Osaka’s Midosuji saw a 9% increase.

Kim Sung-soon, managing director of Cushman & Wakefield Korea’s retail division, said, “Korea’s major retail districts, especially Myeong-dong, have seen a significant reduction in vacancy rates and moderate growth in rents due to the increase in foreign tourists and the opening of several flagship stores.” He also diagnosed, “New trends such as the expansion of K-culture and the growth of the medical market targeting foreigners are important factors driving the growth of the Korean retail market.”