The Jakarta Post
Causeway Bay in Hong Kong. (Shutterstock/e X p o s e)
Russell Street in Causeway Bay, Hong Kong remains the world’s most expensive shopping street, with yearly rent as high as US$2,745 per square feet (0.09 square meters).
The report, released by real estate agency Cushman & Wakefield (Cushwake), was based on data from June. But things have changed since then, as protests in Hong Kong led to a sharp drop in tourist arrivals and retail sales.
“Retail rent has fallen across all submarkets in recent months and the outlook for the remainder of the year is muted," said Kevin Lam of Cushman & Wakefield as quoted from Hong Kong Business.
Despite this, several retailers, especially those focusing on mass-market demand and local spending like education, lifestyle and sports, are using the current market situation as an opportunity to return to high street.
“We are seeing a number of such retailers cautiously look for opportunities to expand or to seek a better rental packages," Lam added.
New York’s Upper 5th Avenue at US$2,250 per square feet per year and London’s New Bond Street at US$1,714 per square feet per year come after Causeway Bay on the list.
“Rent on the world’s top retail street has been fairly stable and there is greater clarity on where retail is heading,” said Darren Yates, head of EMEA retail research at Cushwake.
Retail has also performed well across a diverse group of markets in the Asia-Pacific, with rent in over 80 percent of locations covered either rising or stable.
China and India showed strong performances, with several cities in India experiencing solid rental growth and seven locations across greater China listed in Asia Pacific’s top 20, including Hong Kong, Beijing and Shanghai. (vel/wng)
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