A new study has found that retail rent for the Pitt Street Mall in Sydney is amongst the highest in the world, surpassing even the storied Champs Elysees in Paris.
According to the Colliers International 2013 Global Retail Highlights Report, Sydney’s Pitt Street Mall ranks eighth on a list of locations in the world with the most expensive retail rents, at an average rate of US$9,375 per square metre.
This figure makes renting shop space in the mall more expensive than in the iconic Champs Elysees in Paris, as well as the Via Monte Napoleone in the Italian fashion capital of Milan.
According to the Colliers report, New York’s Fifth Avenue has the most expensive retail rent in the world, at an average of US$32,851 per square metre.
The opulent Chinese financial centre of Hong Kong lays claim to the next two spots, with retail rents on Queen’s Road, Central and Canton Road, Tsim Sha Tsui, of US$22,464 per square metre and US$21,463 per square metre respectively.
Hong Kong is home to three of the most expensive retail areas on the planet, with the city’s Causeway Bay also featuring on the list in sixth place.
New York’s Madison Avenue and London’s Old Bond Street round out the top five, while other locations in the top ten include Zurich’s Bahnhofstrasses in seventh place, Milan’s Via Monte Napoleone in ninth, and Paris’s Champs Elysees in tenth.
The report said that the retail market enjoyed a pronounced rebound during the first half of 2013 as global luxury brands made forays into fresh markets and international sales increased.
This has in turn pushed up rent in landmark commercial areas, as well as increased efforts by retailers to expand into popular tourist destinations.
Colliers says the expansion and refurbishment of retail areas situated at the centre of major Australian cities in tandem with an influx of prestige global brands such as Zara and Topshop have also served to breath new life into CBD shopping.
International retailers seeking to gain a foothold in the Australian market will usually first establish a flagship outlet in downtown Sydney or Melbourne before expanding their presence to other shopping malls out in the suburbs.