Hong Kong is still the world's priciest high-street retail hub

Paris and London are no match.

Hong Kong ranks as the world’s most expensive high-street retail destination, surpassing New York, Paris, London and Tokyo by a substantial margin--the third consecutive year that Hong Kong has ranked top of the global list.

According to a release from CBRE, its regular quarterly ranking of the world’s prime global retail markets saw little change in Q3 2014, with global and hot-growth markets continuing to lead the rankings. Retailers across all markets continue to target high-end shopping areas and international tourists.

Hong Kong (US$4,327 per sq. ft. per annum) maintained a wide lead over the number-two market, New York (US$3,570 per sq. ft. per annum)—where prime rents along Fifth Avenue are at record levels. Rents in Hong Kong remained stable compared to Q2 2014.

“The Occupy Central protest, which began late in Q3, has not yet materially impacted retail rents in Hong Kong as most prime retail shops are located beyond protest areas,” said Joe Lin, Executive Director, Retail Services, CBRE Hong Kong.

“Q3 retail sales results, released by the Government, still recorded growth which shows that consumption power remains strong and mass spenders have digested the social impact brought about by the protests. Retail rents in Hong Kong have slowed since the beginning of this year, but the drop is likely a reflection of the fact that consumers are considering more mid-range brands.

Despite this, as an Asia consumer hub, Hong Kong continues to see expansion requirements from high-end retailers, particularly from local jewelery retailers, as well as an influx of new retail entrants. This will continue to support local retail rents in the territory, in the long term,” added Mr. Lin.

Here's more from CBRE:

A large rental spread also exists between New York and the two leading European markets: Paris (US$1,331 per sq. ft. per annum) and London (US$1,328 per sq. ft. per annum). The gap between the top four markets and the rest of the top ten widens significantly.

While the top four cities continue to hold their leading positions, there was some movement lower in the top ten rankings. Rents rose in Tokyo (US$1,076 per sq. ft. per annum), and fell in Zurich ($895 per sq. ft. per annum) and Sydney (US$730 per sq. ft. per annum), resulting in the cities changing positions this quarter.

In Q3 2014, Tokyo continued to lead rental growth in Asia Pacific, with the continued lack of space in major high-street retail locations pushing up retail rents 7.7% quarter-over-quarter.

Strong rental growth was also recorded in a number of emerging markets in the region, particularly in India and Vietnam, reflecting the recent resumption of structural economic reforms following the general lack of progress over the past few years.

Highlights included a strong 5.9% quarter-over-quarter rental growth in Ho Chi Minh City and a 4.0% quarter-over-quarter rental growth in Mumbai.