Retail rents in Hong Kong tagged as costliest in the world

Rents are worth US$4,333 psf a year.

According to CBRE, retail rents in the world’s most expensive markets are expected to rise further in 2014 due to a shortage of prime available locations and a lack of new development, according to new research from global property advisor CBRE Group, Inc.

CBRE’s quarterly ranking of the world’s prime global retail markets saw little change in Q3 2013 with global and hot-growth markets continuing to lead the list. Retailers across all markets continue to target high-end shopping areas and international tourists.

Here's more from CBRE:

Hong Kong (US$4,333 per sq. ft. per annum) remains the world’s most expensive retail market by a substantial margin. Hong Kong’s retail houses the highest representation of luxury retailers among all global cities. With a healthy tourist market and a lack of available space, finding an adequate unit in prime retail locations is a major challenge for new and existing retailers.

Joe Lin, Executive Director of Retail Services, CBRE Hong Kong, said, “Ground-floor units with a wide shop front in a prime location rarely become available in Hong Kong. Locations with these characteristics are in high demand especially for international brands. Retailers are expecting to continue making profit from Hong Kong where there is a strong consumption from the Mainland Chinese and a positive local sales performance. This breeds confidence from retailers to pay the market’s high rents.”