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Hong Kong’s Causeway Bay emerged as the second most expensive retail street in the world—and first in Asia—behind New York’s Upper 5th Avenue, with an annual rental rate of US$2,878 (S$4,074) per sq ft, Cushman & Wakefield’s latest Main Streets Across the World report revealed.
This is despite the drop in rental values in both places as brands balance the demands of physical and online presences, said the report which tracks 462 of the world’s top retail streets based on their prime rental value.
Aside from Hong Kong, three other Asia Pacific cities were listed in the top 10 most expensive retail destinations in the world. They are Tokyo, Sydney and Seoul, which registered an annual rental rate of US$1,249 (S$1,767) per sq ft, US$968 (S$1,370) per sq ft and US$908 (S$1,285) per sq ft, respectively.
“The Causeway Bay area in downtown Hong Kong retains the top spot in the region’s ranking as the most expensive shopping location. The downward pressure on rents is creating an opportunity for some retailers looking to snap up units on prime pitches with good rental terms,” said Cushman & Wakefield.
Meanwhile, Singapore’s Orchard Road retained its position as the seventh most expensive retail location in Asia Pacific, with annual rental rate of US$328 (S$464) per sq ft.
“Retailers continue to be cautious in their store expansion across the region due to concerns including continued global economic instability, and we see this continuing well into 2017,” said Theodore Knipfing, Cushman & Wakefield’s Head of Retail, Asia Pacific.
“When expansion does happen, the focus is typically on quality over quantity. All in all, despite the cautious outlook across the region, major international and regional retailers will have to eye overseas growth, as their respective domestic markets reach saturation point and investors demand results.”
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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