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Rabu, 13 November 2019 23:04:00

Hong Kong retains first place in global ranking of most expensive shopping streets

Half of global top 10 locations are European with four from Asia and one from the US
Beijing's Wangfujing is ranked 11th in the global list and 6th in the Asia Pacific list
Seven locations across Greater China made the top 20 in the Asia Pacific list
Challenging retail market is putting pressure on rents in some areas
Online retail sales are growing rapidly around the world. 

HONG KONG,  - 13 November 2019 - Hong Kong's Causeway Bay has retained its crown as the world's most expensive shopping street, followed by New York's Upper 5th Avenue and London's New Bond Street, according to new data from Cushman & Wakefield. Beijing's Wangfujing is the other city across Greater China to break the top 20, with a global rank of 11.

The annual 'Main Streets Across the World' report tracks rents for 448 locations across 68 markets - the largest number ever included since it started in 1988. The report ranks locations by their prime rental value using Cushman & Wakefield's proprietary data.

Last year Causeway Bay ended five years of domination by New York's Upper 5th Avenue, and in the 2019 rankings,it retains its position with rents to locate a store amounting to $2,745 per sq ft/yr. Upper 5th Avenue is in second place at $2,250 psf/yr, with London's New Bond Street third in the global list, with annual rents at the London thoroughfare having risen 2.3% in the past 12 months to $1,714 per psf/yr.

Report author Darren Yates, Head of EMEA Retail Research at Cushman & Wakefield, said: "In terms of rental performance, this year's results are encouraging and demonstrate the resilience of the premier retail locations. Rents on the world's top retail streets have been fairly stable and there is greater clarity on where retail is heading. However, there is downward pressure on rents in many weaker locations, particularly in the more mature markets of Europe and North America.  In Asia Pacific, retail has generally performed well across a very diverse group of markets."

In Europe, New Bond Street leads the way ahead of Paris and Milan, with Zurich's Bahnhofstrasse at $866 psf/yr and Vienna's Kohlmarkt at $513 psf/yr completing the top five. Overall, rents in around 70% of locations in Europe were stable or up on last year. Polarization is evident, however, between the more established markets of North Western Europe and Southern, Central and Eastern Europe, where online sales have yet to really accelerate.

In the Americas rental trends have shown a wide degree of variation. Rents in Canada and the US remain under pressure in many areas, although there can be significant variations between individual streets. There is some good news in that rents in New York streets appear to be stabilizing, following falls in recent years. Latin American retail markets continue to mature, although rents can be volatile.

The Asia Pacific region is in a relatively strong position, with rents in over 80% of locations covered either rising or stable. India recorded a particularly strong performance, with solid rental growth across several cities, while retail rents in Hong Kong have been resilient in the face of the recent protests -- although the outlook is more uncertain.

"Hong Kong's Causeway Bay, (Russell Street) remains the world's most expensive retail street this year, based on data as of June 2019 at the time the global survey was completed. Since then, however, the Hong Kong retail market has come under growing pressure from local social unrest that has led to a sharp drop in tourist arrivals and retail sales, as well as interruptions to retailer operations, especially during weekends. As a result, retail rents have fallen across all submarkets in recent months and the outlook for the remainder of the year is muted," explained Kevin Lam, Executive Director, Head of Retail Services, Hong Kong at Cushman & Wakefield.

"However, some retailers see the current market correction as a rare opportunity to return to the high street, and we therefore expect some adjustment in retail trade mix. In particular, trades that focus on mass-market demand and local consumption, such as the education, lifestyle and sports/athleisure sectors, will fare better in the current environment. We are seeing a number of such retailers cautiously look for opportunities to expand or to seek a better rental package."

Across Greater China, seven locations ranked in the top 20 in the Asia Pacific list, including Hong Kong (1st), Beijing (6th), Shanghai (8th), Shenzhen (11th), Guangzhou (13th), Taipei (15th) and Nanjing (20th). All of their rankings remained unchanged from last year, besides Nanjing, which moved three places up to round out the list.(roc/red/*) #for information on collaboration publications, questions and other e-mails riauonemedia@gmail.com
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