Hong Kong adds one more rent record

Tops New York as the world’s most expensive for luxury brand companies.

Hong Kong ended New York's 11-year reign as the location of the world's most expensive district for luxury-brand retailers. International real estate broker Cushman & Wakefield Inc. said Hong Kong overtook Fifth Avenue in Manhattan for the distinction.

It reported that average annual rents at Causeway Bay rose 35% to US$2,630 a square foot at the end of June from a year ago. The survey by Cushman & Wakefield involved 326 prime shopping locations worldwide.

Hong Kong’s Central and Tsim Sha Tsui districts were the next two most expensive retail rental locations in the Asia- Pacific as a shortage of space and land for new outlets forced rents higher.

The torrid pace of Hong Kong's rent increases displaced Fifth Avenue where the average prime rent rose 11% to US$2,500 a square foot, said Cushman & Wakefield. Paris's Avenue des Champs-Elysees rose to third in the global ranking.

Paris rose two places following a 30% increase in prime rents to US$1,129 a foot as international retailers opened or refurbished stores.

International fashion brands and luxury retailers have used flagship stores in Hong Kong to sell to the affluent Chinese market and attract customers from Hong Kong’s wealthy residents.