Colliers International, Hong Kong

Retail Space Markets Still Buoyant in Most Regions

The premier streetfront retail rent in Central, Hong Kong at US$775.00 per sq ft per year was ranked the top in Asia Pacific and the 7th in the world, according to Colliers International’s Global Retail Survey – Spring 2008.  Following Central in Hong Kong, the premier streetfront retail rent in Ginza in Tokyo, Japan (US$677.61 per sq ft per year) and Queen Street Mall in Brisbane, Australia (US$509.99 per sq ft per year) were ranked the second and the third respectively in Asia Pacific.

"Central is no longer only a traditional business district in Hong Kong, but is also perceived as a shopping/entertainment area by local and overseas visitors,” said Simon Lo, Director of Research and Advisory, Colliers International. "Since the entry of H&M in 2007, retail rentals in Central has been sought after by a lot of overseas retailers."  Some retailers found their expansion plans set in 2007 could not be achieved as they were unable to secure spaces in face of fierce competition to rent desirable locations in key areas in Hong Kong.  Therefore, leasing demand for retail spaces in core districts continued to stay strong in 1Q 2008.

"Having key store representation in a prime location like Central enables luxury brands to effectively reach affluent mainland visitors.  Canton Road in Tsim Sha Tsui, on the Kowloon peninsula is another hot spot for those international luxury brands to affirm their premier platform in Asia," said Helen Mak, Director of Retail Services, Colliers International. 

Louis Vuitton opened its doors to their flagship store on Canton Road, Tsim Sha Tsui, which is the largest in Asia and outside of Paris in March 2008.  "International brands see Hong Kong as a showcase for building brand awareness and product knowledge amongst affluent mainland visitors, and it also represents a launch pad into the Chinese market," added Helen.

Meanwhile, according to the Global Retail Highlights report, which ranked 133 retail shopping strips around the world, the global top three premier streetfront retail rents are found in New York’s Fifth Avenue (US$1,650.00 per sq ft per year), Paris’ Champs Elysees (US$1,468.20 per sq ft per year) and London’s Bond Street (US$1,392.76 per sq ft per year).

The report also stated that demand for premier streetfront retail space remains high in almost every region of the world, although the global economy is anticipated to decelerate in 2008.  High-end fashion retailers in particular continue stakeout high-profile, high-traffic locations for better positioning of their brands.  Rents as a result are expected to continue rising in both the short and medium term.  Countries of note include China, India, United Arab Emirates, Russia and Brazil.

-end-

About Colliers International

Colliers Macaulay Nicolls Inc. (CMN), operating as Colliers International, is a leading international real estate services company that provides a full range of services to commercial real estate users, owners and investors worldwide. These services include brokerage, property management, hotel investment sales and consulting, corporate services, valuation, consulting and appraisal services, mortgage banking and research. Through greater knowledge and specialization, CMN strives to accelerate the success of all its clients, partners, professionals, management and staff. CMN is a FirstService Company (Nasdaq: FSRV; TSX: FSV.SV). CMN is the largest member firm of Colliers International, one of the world's top commercial real estate services organizations, with revenues of US$2 billion and 293 offices in 61 countries.

Contact Information

May Chow        
Regional Manager
Communications and PR, Hong Kong Marketing
Colliers International (Hong Kong) Ltd
Tel    852 2822 0736
Fax   852 2868 5275
Email: May.Chow@colliers.com

 back to top