Main Streets Across the World

SINGAPORE, 15 November 2017 – New York’s Upper 5th Avenue remains the most expensive main street in the world, with annual rents at an average of US$3,000 per square foot per year (psf/yr) while Hong Kong’s Causeway Bay retains its second place position despite a 4.7% fall in average rents to US$2,725 psf/yr, according to Cushman & Wakefield’s Main Streets Across the World report.

The annual report, now in its 29th edition, tracks 451 of the top retail streets around the globe and ranks the most expensive in 68 countries by prime rental value utilising Cushman & Wakefield’s proprietary data.

Report author Darren Yates, Head of EMEA Retail Research at Cushman & Wakefield, said: “Despite a lot of negative headlines, global retail remains as dynamic and vibrant as ever in response to technological and demographic change across the world. Premium retail destinations, including New York’s Upper Fifth Avenue, Hong Kong’s Causeway Bay and London’s New Bond Street, are highly sought after by international brands seeking to create engaging retail experiences that offer something new and exciting. The most innovative retailers are combining their online and physical platforms to create a seamless omni-channel experience for the customer, but profile and location play such a crucial role in the premium retail experience.”

TOP 10 MOST EXPENSIVE LOCATIONS BY COUNTRY 

(source: Cushman & Wakefield)

Rank
2017

Rank
2016

Location

2017 RENT
US$/sq. ft./year

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


Asia Pacific region

Four of Asia Pacific’s prominent shopping streets remained in the top 10 list – Causeway Bay (Hong Kong), Ginza (Tokyo), Pitt Street Mall (Sydney) and Myeongdong (Seoul). Hong Kong’s Causeway Bay kept its position as the world’s second most expensive retail street, although rents on the main shopping streets continued to fall by around 5% over the course of the year. This follows a sharp decline in visitors from mainland China, which has prompted caution among many retailers, particularly at the upper end of the market.

In Singapore, although the retail market has been resilient and retail sales are generally up from a year ago, a marginal dip in retail rental has been observed. Singapore’s ranking slipped in both the worldwide and the Asia Pacific indices measuring most expensive locations by country – from 15th to 17th globally, and from 8th to 9th position across Asia Pacific respectively. This may be a result of improving sentiments in the region, which have uplifted the retail rents in emerging markets such as China and Indonesia in 2017, as well as the inability of Singapore-based landlords to ride on the wave of these sentiments due to confluence of factors such as high operating costs and manpower constraints.

The challenging Singaporean retail environment, coupled with elevated supply, has continued to exert downward pressure on retail rents in the city state. The food and beverage industry continues to be a major driver amid consolidations of fashion and fashion accessory brands, while big box retailers are upping their ante and investing heavily in their e-commerce platform to complement their brick and mortar presence.

“The technological advancement is really re-shaping how consumers shop in the foreseeable future. In addition, the millennials and generation Z who grew up with digital technology will continue to drive sales through building an intimate relationship with the retailers both online and offline,” says Christine Li, Head of Research, Cushman & Wakefield Singapore.

“As such, the application of data analytics will continue to be critical for the survival of shopping centres and retailers. Shoppers will become even more discerning and sophisticated, with access to more e-payment options across offline and online platforms, offered in conjunction with various reward and loyalty programmes.”