Hong Kong still the most expensive city in the world for retailers

But rent growth is slowing.

International property advisors CBRE said Hong Kong’s retail rent ranks the first at US$4,328 (HK$33,758) per square foot per annum. Behind Hong Kong are New York, Paris, and London at US$3,050, US$1,220, and US$1,156, respectively.

Other top-10 prime global retail markets are Sydney, Zurich, Tokyo, Melbourne, Moscow and Brisbane.

Rental growth in the prime retail streets has been slight, increasing 1.1% quarter-on-quarter, which has slowed the year-on-year growth to 7.2%.

Despite its breathtaking rents, Hong Kong continues to draw retailers eager to benefit from the growing luxury retail scene, said CBRE. Last year, 51 new retailers opened stores in the SAR and the city gathered the most luxury retailers of the global markets.

On the other hand, prime rent in New York, London, Tokyo and Zurich are rising. The growth rate of rent in New York went up by 22% from the same period last year to 2.7% in the second quarter. Rent in central London rose 9.1% quarter-on-quarter and 20% year-on-year.