Asia-Pac leads global retail rental growth

Business Times: Fri, Sep 02
RETAIL markets worldwide have bounced back strongly in the last year with the Asia-Pacific leading the pack in terms of retail rental growth, a study shows.

The Main Streets Across The World survey by real estate services firm Cushman & Wakefield tracks rents in 278 top shopping locations across 63 countries for the twelve months to June this year.

Some 62 per cent or 39 countries registered rental growth, while 19 per cent posted stable rents and 19 per cent saw a decline in rents.

In the Asia-Pacific, rental uplift was 12.2 per cent, compared to 7.4 per cent in the Americas and 1.9 per cent in Europe. Rentals were flat in the Middle East and Africa.

The study also included a global ranking, using the most expensive location in each country.

At US$2,250 psf per year, New York’s Fifth Avenue – where rents shot up by 21.6 per cent – maintained its reputation as the most expensive shopping street in the world for the tenth year in a row, followed by Causeway Bay in Hong Kong and Tokyo’s Ginza.

Singapore inched up one spot to 17th with US$371 psf per year, on the back of stable rental rates in Orchard Road.

‘Rents of retail space in Orchard Road rose on average by 2.4 per cent in local currency terms, as a result of healthy economic fundamentals, positive consumer sentiments and a moderation in new retail supply in the past year,’ said Toby Dodd, Cushman & Wakefield’s Singapore executive director. ‘The retail property market in Singapore’s Orchard Road is expected to be fairly stable in the rest of 2011 as stakeholders incrementally adjust to the substantial new supply completed two years ago.’

Australia’s Pitt Street Mall in Sydney rose through the ranks from 9th place to fourth, as rents surged 33.3 per cent year on year thanks to major redevelopment.

Meanwhile, Avenue des Champs-Elysees in Paris was in fifth place with US$992 psf per year – up 5.3 per cent – making it the most expensive shopping location in Europe, while New Bond Street in London slipped two spots to sixth, despite rents growing 4.3 per cent to US$930 psf per year.

And number 16 on the list, Wangfujing in Beijing was the biggest riser worldwide this year, registering growth of some 110 per cent to US$379 psf per year.
Source: Business Times © Singapore Press Holdings Ltd.

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