1. Market Context: Dong Khoi in the Global Retail Network
According to Cushman & Wakefield’s Main Streets Across the World 2025 report, Dong Khoi Street continues to rank 17th among the world’s most expensive retail streets. The average rent stands at $346 per square foot per year (approximately $3,700/m²/year), representing a modest 6% decrease from the previous year—a technical correction following the post-COVID recovery.
Within the Asia-Pacific region, Dong Khoi ranks 16th, trailing behind established giants such as Ginza (Tokyo), Tsim Sha Tsui (Hong Kong), and Pitt Street Mall (Sydney). However, the critical factor is that the supply of prime retail space in the city center has remained virtually unchanged, with no new projects added, creating a persistent supply-demand imbalance that drives long-term value.
2. Historical Perspective: The Asia Travel Mates Benchmark (2006-2008)
A remarkable data point from nearly two decades ago provides a powerful illustration of Dong Khoi’s rental evolution. Between 2006 and 2008, Asia Travel Mates, a travel company, leased a 150m² property (including both ground floor and upper floor) in the prime central district for $7,000 per month.
Then vs. Now: A 150m² Property Comparison
| Metric | 2006-2008 | 2025-2026 | Change |
|---|---|---|---|
| Monthly Rent (USD) | $7,000 | $37,500 – $55,500 | 5.3x – 7.9x increase |
| USD/VND Exchange Rate | ~16,000 VND | ~25,500 VND | +60% |
| Rent per m²/month (USD) | ~$46.7/m² | $250–$370/m² (ground floor) | 5.3x – 7.9x increase |
| Rent per m²/month (VND) | ~750,000 VND | 6.4 – 9.4 million VND | 8.5x – 12.5x increase |
Key insight: If Asia Travel Mates had retained that same 150m² property to today, the rental value would have multiplied 5 to 8 times in USD terms, and nearly 9 to 12.5 times in VND terms—far outpacing inflation and reflecting the structural transformation of Ho Chi Minh City’s central business district.
This dramatic appreciation underscores the wealth-preserving and wealth-generating power of prime location retail real estate in a rapidly developing Southeast Asian metropolis.
3. Strategic Driver: High-Quality Tourism
According to Vietnam’s Tourism System Master Plan for 2021-2030, with a vision to 2045, the country aims to welcome 35 million international visitors by 2030, contributing 13-14% directly to GDP. By 2035, this figure is projected to reach 50-60 million, on track toward 70 million by 2045.
More important than sheer numbers is the shift in focus: from mass tourism to high-quality tourism, attracting visitors with significant spending power, longer stays, and higher expenditure on services, dining, and premium retail. This is the “golden customer segment” that luxury brands on Dong Khoi Street are targeting.
4. Dong Khoi Retail Rent Forecast 2026-2035
| Period | Projected Growth | Key Drivers |
|---|---|---|
| 2026-2030 | 5-8% annually Exceeding previous peak by 2030 |
International arrivals reach 35 million; luxury brand expansion; limited supply. |
| 2031-2035 | 10-12% annually Approaching Bangkok, Kuala Lumpur levels |
Vietnam becomes a leading regional destination; HCMC solidifies as financial hub; severe supply-demand imbalance. |
This forecast is based on analysis from Cushman & Wakefield, Savills World Research, and national tourism targets. Macroeconomic factors such as global economic fluctuations, interest rates, and tax policies may influence the growth trajectory.
5. The Supply Squeeze and Market Mechanics
The Cushman & Wakefield report emphasizes: the supply of prime luxury retail space in Ho Chi Minh City’s central business district, particularly on Dong Khoi Street, has seen no new projects added in recent years. The land fund and high-end commercial space here are finite.
Meanwhile, demand from international brands continues to rise. The slight 6% rent decrease in 2025 is not a sign of weakness, but rather a technical correction following the post-COVID recovery phase, reflecting landlords’ flexibility in offering more attractive lease terms to maintain occupancy rates.
6. Travel Advisor Recommendations for Investors and Brands
- For Property Owners: Consider long-term lease strategies with anchor tenants to ensure stable cash flow, while remaining flexible on terms to retain quality lessees. The Asia Travel Mates example shows the extraordinary long-term value of holding prime real estate.
- For Luxury Brands: The 2026-2028 period represents a “window of opportunity” to negotiate favorable rents before the next growth cycle accelerates. Prioritize prime frontage positions along the Nguyen Hue to Le Loi segment.
- For Tourism Developers: Close collaboration with retail brands is essential to create shopping experiences that integrate local culture, transforming Dong Khoi into an unmissable destination in the luxury traveler’s itinerary.
Conclusion: A Golden Decade Ahead
Dong Khoi Street stands on the brink of a golden decade. Propelled by the remarkable growth of Vietnam’s tourism industry and the structural scarcity of supply, its commercial value will continue to escalate. The Asia Travel Mates historical data serves as a powerful reminder: prime location retail real estate in Ho Chi Minh City has delivered exceptional returns over the past 20 years, and all indicators point to continued appreciation in the decade ahead.
This is not merely a story about retail real estate, but a narrative of a maturing luxury consumer market and Ho Chi Minh City’s rising stature on the regional commercial map.
The period 2026-2035 will mark Dong Khoi’s definitive entry into the arena of Southeast Asia’s retail giants—and this game has only just begun.