New York has overtaken Hong Kong for the world’s most expensive shopping street after the latter saw a slowdown in the demand for luxury goods from mainland visitors, the Hong Kong Economic Journal reported Thursday.
According to Cushman & Wakefield, a global property services firm, inflation-adjusted real rents at Russell Street in Causeway Bay fell 6.8 percent to HK$1,778 (US$229.26) per square foot this year from 2013, while New York’s Fifth Avenue rose 13.3 percent to HK$2,275, regaining the top spot after two years.
The Avenue des Champs-Élysées in Paris retained the third sport with a rent of HK$1,011.
The firm attributed Hong Kong’s decline to the second spot to Beijing’s anti-graft campaign, which has led to a drop in spending on luxury goods by mainland tourists. Consequently, this has restrained retailers’ expansion plans in Hong Kong.
Rents in the Causeway Bay shopping area were further weighed down by the pro-democracy protests that started in late September, said Michele Woo, executive director of Hong Kong retail at Cushman & Wakefield.
On the other hand, the positive outlook for the US economy has drawn super brands into the core section of the shopping area in New York.
In a separate report by Colliers International, Fifth Avenue also topped the list for most expensive retail property rents, followed by two other Hong Kong shopping precincts — Queen’s Road in Central and Canton Road in Tsim Sha Tsui.
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