HONG KONG, Nov. 29, 2011 /PRNewswire-Asia/ -- A report released by Cushman & Wakefield, the world's largest privately-held commercial real estate services firm, reveals that despite global economic conditions, Asia Pacific's retail sector will continue to grow off the back of continued consumer demand. According to the latest Cushman & Wakefield Asia Pacific Retail Report for the Q3 2011, prime retail rent in Causeway Bay, Central and Tsim Sha Tsui are the highest in the Asia Pacific region. Asking rents of the three districts are US$2,001 (approximately HK$15,598), US$1,624 (approximately HK$12,695) and US$1,463 (approximately HK$11,404).
Sigrid Zialcita, Managing Director of Research in Asia Pacific comments: "Retail fundamentals remain solid in Asia Pacific, with sustained consumer spending in Hong Kong, Shanghai and Beijing. China has been the most significant growth driver for 2011 which has consequently led to higher retail rents in Chinese cities." Sigrid Zialcita continues, "The Asian market has become a prime target and pertinent region for retailers resulting in an increase in investment sales and retail constructions."
In August 2011, Hong Kong recorded 4.1 million tourist arrivals, a growth of 17.7% year-on-year and making this the first time where monthly arrivals exceeded 4.0 million. Contributing to the increasing number of arrivals are visitors from mainland China, whereas mainland arrivals increased 23.0% year-on-year in August to 2.9 million. Heavily supported by tourist spending, the city's buoyant retail market, saw another month of strong growth in August with total retail sales increasing 29.0% year-on-year. In July, it was reported that sales of luxury goods including watches and jewellery increased by 52.0% year-on-year, amounting to HK$7.8 billion.
Foreseen continued growth in the number of tourist arrivals and strong performance of the retail sector will further attract foreign brands to the market, enabling landlords to remain on the favourable end of negotiations. Constrained high street shop supply will also support sustained rental growth as retailers outbid one another for prime space. The economic downturn in Europe and the US has prompted international retailers to further expand in Hong Kong and the mainland China in order to diversify their exposure and boost revenues. The Hong Kong retail leasing market is even more competitive and fast-moving than ever. However, the report also points out that the potential reduction of import taxes on luxury goods in mainland China is expected to have some repercussions on retail sales in Hong Kong. While the move is aimed at spurring domestic consumption in line with the objectives of China's five-year plan through 2015, it may curb spending by mainland visitors in Hong Kong at a time when the city's retail stores have become increasingly dependent on tourists.
To read more on the Asia Pacific Retail Report for 3Q 2011, please visit our Knowledge Centre at: www.cushmanwakefield.com
About Cushman & Wakefield
Cushman & Wakefield is the world's largest privately-held commercial real estate services firm. Founded in 1917, it has 234 offices in 61 countries and more than 13,000 employees. The firm represents a diverse customer base ranging from small businesses to Fortune 500 companies. It offers a complete range of services within five primary disciplines: Transaction Services, including tenant and landlord representation in office, industrial and retail real estate; Capital Markets, including property sales, investment management, investment banking, debt and equity financing; Client Solutions, including integrated real estate strategies for large corporations and property owners, Consulting Services, including business and real estate consulting; and Valuation & Advisory, including appraisals, highest and best use analysis, dispute resolution and litigation support, along with specialized expertise in various industry sectors. A recognized leader in global real estate research, the firm publishes a broad array of proprietary reports available on its online Knowledge Center at: www.cushmanwakefield.com.
