HK trumps Singapore as world's most expensive retail market
by Cheryl Tay
With a significant increase in tourist inflows and domestic wealth, Hong Kong was ranked the world's most expensive shopping destination, according to a recent report by CBRE Group, Inc.
The CBRE rankings of prime global retail rents for Q1 2012 saw little change from the rankings in the previous quarter. Hong Kong and New York retained the top two positions, with both cities posting major quarter-on-quarter increases in retail rents.
Singapore landed in 18th place with rents at US$455 psf (S$573 psf) per annum, similar to the previous quarter.
According to Letty Lee, Director for Retail Services at CBRE, "Singapore's rents remain competitive and this has given global retailers a good reason to set up in Singapore. Several fashion labels have either expanded their presence in Singapore with a South East Asia flagship status or have established their first standalone stores."
Singapore welcomed new retailers including Coach, Tory Burch, Fendi, Tommy Bahama and J Lindeberg.
Meanwhile, in an earlier CBRE report for the 2012 edition of the annual survey entitled How Global is the Business of Retail, Singapore was found to be the most targeted Asian market for European investors, accounting for 39.9 percent of European brands.
"The proportion of top retailers being represented in Singapore has increased slightly from 38.5 per cent from the year before," noted CBRE.
In the latest survey, Sydney, Tokyo and London also made it to the top five.
"Overall, this quarter has seen more positive aspects than the last; with improved consumer spending as well as steady occupier demand and new shopping centres bringing benefits to emerging markets," said Ray Torto, Global Chief Economist at CBRE.
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