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New York - There's expensive and then there's Hong Kong.
The Asian shopping haven in the first quarter kept its crown as having the world's highest rent for prime retail properties, at nearly 50% more than for similar districts such as upper Fifth Avenue in Manhattan.
Rents were more than four times the rate in similar areas in London and Paris, according to a report by global property adviser CBRE Group.
The 10 most expensive cities for retailers benefit from strong demand and modest new supply, a recipe for stable record-high prime rental rates, the report released on Sunday showed.
In some markets, such as Hong Kong and London, the sky-high rents have prompted some newcomers to look nearby. For example, in London, Mayfair has benefited from those priced out of Bond Street.
Annual retail rent in high-end shopping areas in Hong Kong averaged €36 351 per square metre.
"Given that space is so expensive in Hong Kong's prime shopping streets largely driven by continued demand from international luxury brands, many traditional retailers have moved into more niche secondary retail locations as they still want to be in and access the market, but have been priced out of the prime space," Joe Lin, CBRE's executive director of retail, said in a statement.
New York ranked second among the most expensive global retail markets, with prime rents averaging €24 944 per square metre.
Europe's prime retail markets followed, with London at €8 843 per square metre, and Paris at €8 820 per square metre.
The supply of prime space was tight elsewhere in the Asia Pacific region. An inflow of US retailers helped Sydney maintain its prime rent at an average of €8,549 per square metre.
Tokyo was sixth at €7 519 per square metre, followed by Melbourne at €7 148 per square metre.
Zurich came in eighth at €6 905 per square metre. Brisbane's mining and natural resource sectors, and growing population helped push that into the top 10 with its prime retail rents up 15% to €6 209 per square metre.
Moscow rounded out the top 10 with rents at €6 203 per square metre.
The Asian shopping haven in the first quarter kept its crown as having the world's highest rent for prime retail properties, at nearly 50% more than for similar districts such as upper Fifth Avenue in Manhattan.
Rents were more than four times the rate in similar areas in London and Paris, according to a report by global property adviser CBRE Group.
The 10 most expensive cities for retailers benefit from strong demand and modest new supply, a recipe for stable record-high prime rental rates, the report released on Sunday showed.
In some markets, such as Hong Kong and London, the sky-high rents have prompted some newcomers to look nearby. For example, in London, Mayfair has benefited from those priced out of Bond Street.
Annual retail rent in high-end shopping areas in Hong Kong averaged €36 351 per square metre.
"Given that space is so expensive in Hong Kong's prime shopping streets largely driven by continued demand from international luxury brands, many traditional retailers have moved into more niche secondary retail locations as they still want to be in and access the market, but have been priced out of the prime space," Joe Lin, CBRE's executive director of retail, said in a statement.
New York ranked second among the most expensive global retail markets, with prime rents averaging €24 944 per square metre.
Europe's prime retail markets followed, with London at €8 843 per square metre, and Paris at €8 820 per square metre.
The supply of prime space was tight elsewhere in the Asia Pacific region. An inflow of US retailers helped Sydney maintain its prime rent at an average of €8,549 per square metre.
Tokyo was sixth at €7 519 per square metre, followed by Melbourne at €7 148 per square metre.
Zurich came in eighth at €6 905 per square metre. Brisbane's mining and natural resource sectors, and growing population helped push that into the top 10 with its prime retail rents up 15% to €6 209 per square metre.
Moscow rounded out the top 10 with rents at €6 203 per square metre.
