Rents in Myeong-dong 9th highest in the world

According to a report compiled by the real estate services provider Cushman and Wakefield by analyzing rents and changes in the figures in 278 shopping districts in 63 countries, annual rent per square foot in Myeong-dong rose 0.6 percent from 2010 to come in at $635, making the area the world’s ninth most expensive shopping district to run a business in.

The company attributed the rise to increasing value of properties in Seoul fueled by the economic recovery and the rise in retail sales, which is expected to continue this year. According to the company’s estimates, Korea’s retail sales volume is likely to expand 5.7 percent from last year to come in at 211 trillion won ($199 billion), breaking the 200 trillion won mark for the first time.

The title of the world’s most expensive shopping district was kept by New York’s Fifth Avenue for the 10th consecutive year.

The Fifth Avenue, which saw rents jumped 21.6 percent from last year, was followed by Hong Kong’s Causeway Bay, and Ginza in Tokyo. Annual rent per square foot in Fifth Avenue came in at $2,250, while that in the Hong Kong street was $1,943 and that in Tokyo’s Ginza was recorded at $1,044.

By Choi He-suk (cheesuk@heraldcorp.com)