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Causeway Bay Defends Title As Asia’s Most Expensive Retail Street

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Source: Media Outreach
Headline: Causeway Bay Defends Title As Asia’s Most Expensive Retail Street
HongKong’s Causeway Bay ranks as Asia’s most expensive street with annual per sq ftrents at US$2,725 (HK$21,255), and being second globally after New York’s Upper5th Avenue, which commands an annual per sq ft rents at US$3,000
Softeningin rents in Causeway Bay helped bring in a greater diversification to trade mixin the area, such as lifestyle merchandise and more PRC brands.
HONG KONG, CHINA –Media OutReach – November 15, 2017–NewYork’s Upper 5th Avenue and Hong Kong’s Causeway Bay retain their first andsecond place rankings, while soaring rents have seen London’s New Bond Streetrise to become the world’s third most expensive retail street, according toCushman & Wakefield.
The annual Main Streets Across The Worldreport, now in its 29th edition, tracks 451 of the top retail streets aroundthe globe and ranks the most expensive in 68 countries and regions by primerental value utilizing Cushman & Wakefield’s proprietary data (Table 1).
Upper 5th Avenue remains the most expensivemain street in the world, with annual rents at an average of US$3,000(HK$23,400) per square foot per year (psf/yr) — the same level as in 2016.Despite a 4.7% fall in average rents to US$2,725 (HK$21,255) psf/yr, HongKong’s Causeway Bay retains its second place position, as rental correction inthe district is almost complete towards the end of this year.
London’s New Bond Street leapt into thirdplace in the global rankings in 2017 as rents increased by more than a third(in local currency) on the previous year to US$1,720 (HK$13,416) psf/yr. Theincrease relative to other global destinations underlines the strength ofLondon’s premium retail offer and strong demand for prime retail space in theWest End, which brought a resurgence in leasing deals at the beginning of 2017despite having a pause in activity in the initial aftermath of the EUreferendum last year.
Report author Darren Yates, Headof EMEA Retail Research at Cushman & Wakefield, said: “Despite alot of negative headlines, global retail remains as dynamic and vibrant as everin response to technological and demographic change across the world. Premiumretail destinations, including New York’s Upper Fifth Avenue, Hong Kong’sCauseway Bay and London’s New Bond Street, are highly sought after byinternational brands seeking to create engaging retail experiences that offersomething new and exciting. The most innovative retailers are combining theironline and physical platforms to create a seamless omni-channel experience forthe customer, but profile and location play such a crucial role in the premiumretail experience.”
Table 1: TOP 10 MOSTEXPENSIVE LOCATIONS BY COUNTRY (source:Cushman & Wakefield)
Rank2017
Rank2016
Location
2017 RENTUS$/psf/yr
1
1
New York, Upper 5th Avenue (49th – 60th Sts)
3,000
2
2
Hong Kong, Causeway Bay
2,725
3
4
London, New Bond Street
1,720
4
6
Milan, Via Montenapoleone
1,433
5
3
Paris, Avenue des Champs Élysées
1,407
6
5
Tokyo, Ginza
1,200
7
7
Sydney, Pitt Street Mall
1,000
8
8
Seoul, Myeongdong
914
9
9
Zurich, Bahnhofstrasse
883
10
10
Vienna, Kohlmarkt
490
Hong Kong’s Causeway Bay remains theworld’s second most expensive retail street, although rents on the mainshopping streets continued to fall by around 5% over the course of the year.This follows a sharp decline in visitors from mainland China, which hasprompted caution among many retailers, particularly at the upper end of themarket.
Mr Kevin Lam, Cushman & Wakefield’s Executive Director, Headof Retail Services, Hong Kong
, said, “Despite the drop in rentsduring the course of 2017, the pace of drop in CWB rents has slowed since themiddle of this year, and the correction is expected to finish towards year-end.Rents in Causeway Bay will be in a better position next year, although therewill still be some distance between the rents of Causeway Bay and of Upper 5thAvenue in New York.”
“Ranking at second place globallyreflected a softening of high street rents in Causeway Bay, but the plus sideis this healthy correction has driven greater diversification in trade mix onthe high street. Apart from the luxury trades which have always been dominantin Causeway Bay, there are more lifestyle merchandise, F&B and PRC brandsentering the district, which would enhance the shopping experience forcustomers. As the case of duplex and triplex leasing becomes rarer, we expectthe number of varieties of shops will increase.”
Meanwhile, mainland China’s retailmarket continues to evolve as a rapidly growing consumer base of savvy,brand-aware shoppers seek out new and sophisticated retail experiences.Beijing’s Wangfujing is ranked 11th in the global table, with annual rents at$477 psf/yr. The city’s online retail market has experienced exceptionallystrong growth and internet sales now account for circa 18% of the total,although 12.4 million sq ft of new space is expected to become available in theFengtai and Tongzhou districts in 2018 as new developments complete.
To read the report, please click here>> http://cushwk.co/mainstreets
About Cushman & Wakefield
Cushman & Wakefield is a leadingglobal real estate services firm that helps clients transform the way peoplework, shop, and live. Our 45,000 employees in more than 70 countries helpoccupiers and investors optimize the value of their real estate bycombining our global perspective and deep local knowledge withan impressive platform of real estate solutions. Across Greater China, thereare 20 offices servicing the local market. The company was named the top Chinareal estate services firm in four categories of Overall, Valuation,Agency/Letting and Research by Euromoney’s 2017 Survey. Cushman & Wakefieldis among the largest commercial real estate services firms with revenue of $6billion across core services of agency leasing, asset services, capitalmarkets, facility services (C&W Services), global occupier services, investment& asset management (DTZ Investors), project & development services,tenant representation, and valuation & advisory. 2017 marks the 100-yearanniversary of the Cushman & Wakefield brand. 100 years of taking ourclients’ ideas and putting them into action. To learn more, visit www.cushwakecentennial.com, www.cushmanwakefield.com.hk orfollow us on LinkedIn (https://www.linkedin.com/company/cushman-&-wakefield-greater-china)
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