Adelaide saw the highest rental growth in Asia Pacific last quarter, while Sydney and Melbourne continued to rank in the world’s most expensive retail markets.
Adelaide recorded an 8% rise in rents last quarter, underpinned by international retailer interest linked to the rejuvenation of Rundle Mall and the completion of Rundle Place, according to the latest CBRE statistics.
Sydney and Melbourne were placed sixth and eighth respectively in the global rankings of most expensive retail markets, although a slight decrease in rents saw Sydney drop from fifth place to sixth.
CBRE’s Australian director retail services, Alistair Palmer, said the level of offshore retailer interest was changing the dynamics of the major CBD retail markets in Australia.
“While Sydney still has the highest rentals of any of the Australian CBD markets, it is very difficult for the large international retailers to secure locations as they generally require between 1,500sqm and 4,000sqm of space,” said Palmer.
Hong Kong remains the world’s most expensive retail market by a substantial margin, at A$4,736 per square foot per annum).
While the top cities continue to hold their leading positions, there was some movement lower in the top ten rankings. Rents rose in Zurich A$1033 per sq. ft. per annum) and fell slightly in Sydney (A$995 per sq. ft. per annum), resulting in the cities switching positions this quarter.
World’s highest rents: (A$ per square foot per annum)
- Hong Kong - $4736
- New York - $3443
- Paris - $1559
- London - $1393
- Zurich - $1033
- Sydney - $995
- Tokyo - $957
- Melbourne - $835
- Moscow - $808
- Beijing - $737