Hong Kong Still World’s Second Most Expensive Retail Address, Shanghai’s Nanjing Road Ranks #16
3 Nov, 2010, China
Most of the world’s top retail locations have remained resilient during the last twelve months, with Latin Americaand Asia-Pacific showing the most positive rental growth, according to Cushman & Wakefield. Around two-thirds (66%) of the 59 countries surveyed by the real estate adviser for its annual Main Streets Across the World report reported prime rents either rising or remaining static over the year to June. The findings paint a brighter outlook to those of 2009, which revealed the biggest global fall in rents in the report’s 25 year history.
Main Streets Across the World provides a global barometer of the retail sector, tracking rents in the world’s top 269 shopping locations across 59 countries. The league table is drawn up by taking the most expensive location in each of the countries monitored.
New York’s Fifth Avenue, where rents increased by 8.8%, kept its number one spot as the world’s most expensive retail address, for the ninth year running. Causeway Bay in Hong Kong remained at second place. London’s New Bond Street leapt two rankings, to overtake Avenue des Champs-Elysées in Paris as the most expensive location in Europe. Shanghai’s Nanjing Road climbed 4 positions to the world’s 16th most expensive location.
Andy Zhang, Managing Director of Cushman & Wakefield’s China operations commented: “The 2010 Expo and the positive performance of the macro economy in China have definitely strengthened Shanghai’s retail market in 2010. Expo was a great opportunity for international brands to enhance their presence and image in China. Nanjing Road remains the iconic area for luxury goods and international brands. Major international brands such as Uniqlo, Gap, Nike and Puma all chose this area for their flagship stores. In recent years, Shanghai consumers have become increasingly sophisticated, they are not only looking for quality products but also for a “shopping experience”.
James Hawkey, National Head of Retail comments on Beijing and Chengdu markets: “Following the gradual recovery from the economic recession, Beijing’s retail market became very active in 2010 with nearly 1.4billion sq. m. of new supply on the market, which drove the rise of rentals with Xidan as Beijing’s most expensive retail location. Chengdu also remains one of China's largest and most attractive retail markets. The city's Chunxi Road pedestrian area is one of China's busiest retail locations and achieves some of China's highest ground floor rentals, equivalent to top rentals levels in New Delhi, Amsterdam, and Auckland. The Chunxi Road area remains the undisputed centre of the retail market in Chengdu and should benefit further from the metro system and the completion of major new projects such as Wharf's Harbour Centre. At the same time however, a number of new retail areas are now emerging around the second and third ring roads, with a number of shopping centres such as GTC's Galleria, and Huarun's MixC being completed. These suburban retail areas will bring consumers a new range of choices over the coming few years with exciting new brands such as Zara, H&M and Sephora entering the market and high quality shopping environments.”
This year’s findings reveal a clear polarisation between prime and secondary locations. Secondary locations have been much more adversely affected by the fall-off in retailer demand and consequent decline in rents, as retailers move quickly to close unprofitable stores and rein in expansion.
The world’s ten most expensive shopping streets 2010
Source: Cushman & Wakefield (full ranking contained in the report)
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