One of Sydney’s most popular shopping malls has joined the list of the five most expensive retail locations in the world.
A new global survey by commercial realtor Cushman & Wakefield has revealed that Sydney's Pitt Street Mall is now the fifth most expensive retail location in the world as a result of ongoing gains in prime retail rents.
Cushman & Wakefield's Main Streets Across the World ranked the most expensive shopping locations around the globe, covering 330 popular retail destinations across a total of 35 countries.
Pitt Street Mall has risen three places to fifth position following a rise of 25 per cent in prime retail rents, as well as the addition of several leading international retailers as tenants in just the past six months.
According to David Woolford, Cushman & Wakefield's managing director Australia, Pitt Street Mall's ascent to the top five most expensive retail locations is significant of Sydney's prominence as an international shopping destination.
"The influx of some of the world's most recognisable retail brands has boosted Sydney's prime retail market and this has spread to the other major retail markets in Melbourne and Brisbane," said Woolford.
"These international brands have arrived with an interesting strategy based around the establishment of large footprint stores in super prime areas instead of a rollout strategy. Changing consumer behaviours and trends towards online shopping mean these brands can focus on flagship outlets in premium high-traffic areas, and they are willing to pay top dollar to do so."
Pitt Street Mall's 25 per cent rise in prime retail rates was enormous compared to the global average of 2.4 per cent logged in the 12 months to September 2014. It was also far and away the highest out of the top five entries on the list.
New York's Upper Fifth Avenue took out the top position with rent of US$37,674 per square metre, an increase of 13 per cent compared to the preceding year.
Lat year's top place holder, Hong Kong's Causeway. slipped to second place with a 6.8 per cent decline in rent.
The Champs Elysee in Paris retained third place with no significant change in rents, while London's New Bond Street also kept the same position, staying in fourth place following a rental increase of 4.2 per cent.