Sydney's Pitt Street remains Asia Pacific's third most expensive retail precinct in terms of rental value, behind Hong Kong’s Causeway Bay and Tokyo’s Ginza district.
The rankings, part of Cushman & Wakefield's annual Main Streets Across The World report, tracks 446 of the top retail streets around the globe and ranks the most expensive by prime rental value.
A significant decline in New York rents has seen Upper 5th Avenue slip back to second place, with Hong Kong’s Causeway Bay returning average rents at $38,500 per square metre per year.
Tokyo’s Ginza is the highest-ranked Asia Pacific high street, with rents on average costing $17,600 per square metre per year.
Sydney’s Pitt Street Mall has remained as the world’s 7th most expensive retail precinct by country, with rents remaining steady at A$14,000 per square metre per year.
Cushman & Wakefield's Main Streets across the World Report Rankings
|Rank||City||Location||Rent Q2 2018 $/sq m/Year|
|1||Hong Kong||Causeway Bay||$38,501|
|2||New York||Upper 5th Avenue||$32,551|
|3||London||New Bond Street||$25,146|
|4||Paris||Avenue des Champs Elysees||$21,893|
|7||Sydney||Pitt Street Mall||$13,897|
Sydney's most popular high street maintained its premium position with relatively flat rental growth and an ongoing uplift in online retail sales.
Consistent foot traffic and the increased demand for experiential shopping is further supporting rents with most retailers trading strongly within the precinct, particularly in the high-end luxury category.
“Australia has firmly maintained its position as host to one of the world’s top ten most expensive retail streets, as rents in higher footfall locations such as Pitt and Bourke Street have remained steady over the past 12 months,” Cushman & Wakefield director of retail leasing Matt Hudson said.
Melbourne’s Bourke Street Mall lifted in the Asia Pacific rankings from 6th to 5th at $7,000 per square metre per year, benefiting from 22 million visitors annually.
Brisbane’s Queen Street has held its position as the 8th most expensive in the region, with retail rents averaging $4,500 per square metre per year.
“There is still a significant appetite for premium retail sites globally, with the top retailers using stores as part of their customer experience strategy,” Cushman & Wakefield head of retail research Darren Yates said.
“While technology is still a major disruptor in retailing, it is also enabling physical retail to fight back as it allows retailers to better understand their customers and to enhance the in-store experience.”
Despite rents in some parts of the Australian market softening, most notably in CBD strip retail areas, rents in higher footfall locations such as Pitt Street and Bourke Street have held firm.
Precincts such as Sydney’s George Street recorded significant rental growth on the back of the forthcoming light rail project, with multiple new precincts under development.