Russell Street Shop rents 1736 and re-enters the world’s most expensive commercial street

The retail market in Hong Kong has improved. The most expensive pavilion in Causeway Bay, Russell Street, has been narrowed down. In the upper part of Fifth Avenue in New York, the world’s most expensive commercial street last year, this year’s shop rent plummeted 25%, making Russell The street rents 1,736 yuan per month, and has once again won the world’s most expensive commercial street in the past five years.

DTZ has published a report on the “Main Streets of the World”, which collects rents from 446 major commercial streets in 65 countries and regions around the world. As of the second quarter of 2018, the rent of Russell Street was 1736 yuan, although it was 2% lower than the 1771 yuan in 2017, it still became the most expensive commercial street in the world after 2013.

New York, London, won the Asian Quarter

The upper section of Fifth Avenue in New York, which has become the most expensive commercial street in the world since 2014, has fallen to second place this year. As the local vacancy rate rose to as high as 23.1%, the rent was reduced from 1950 yuan per party last year to 1463 yuan this year, a drop of 25% in one year. The rent of New Pound Street in London, UK, rose by 1.5% year-on-year to 1,134 yuan, making it the third most expensive commercial street in the world and the highest in Europe.

Lin Yingwei, executive director of DTZ and the head of Hong Kong’s retail department, said that the retail market in Hong Kong has recovered. In particular, the number of tourists and retail sales have increased in the first half of this year, which has caused retailers to actively consider opening stores or expanding their prices. The increase in the number of visitors to the Causeway Bay was up to 3%. The number of visitors from Tsim Sha Tsui and Mong Kok increased by 3% and 5% to 8% respectively. The vacancy rate in Central is still high, which is expected to fall by 10% to 15%. Next year’s rent trend will be affected by the Sino-US trade war, and there will be more accurate forecasts, but the retailer’s opening strategy is still cautious.

Russell Street rents were able to return to the top of the list, all due to the sharp drop in rents in the upper section of Fifth Avenue in New York. Lin Yingwei explained that due to the impact of online shopping on the local retail industry, many retailers’ desire to open physical stores has been greatly reduced, resulting in a large increase in vacancy rates and the impact of rents. As for Hong Kong, although it is also affected by online shopping, Hong Kong has always been “street” too convenient. The penetration rate of online shopping is lower than that of many areas. The impact on street shop rents is temporarily inferior to that of other areas.

The “Global Streets” report was first published in 1988. In the past 30 years, Russell Street in Causeway Bay has become the world’s most expensive commercial street, ranking second in the world, only 14 times in the upper section of Fifth Avenue in New York.