Retail in Asia

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Beijing now 10th most expensive retail markets

Beijing is now the 10th most expensive retail market in the world, according to new research by global property advisor CBRE Group Inc. (CBRE).

The steady growth of the country’s retail industry spurs activity within the market, translating into quality property and a more fruitful retail environment overall.

Sebastian Skiff, Executive Director, CBRE Retail-Asia, said that with the strong momentum driving the China retail industry and the China economy as a whole, it is really not surprising.

"We expect consumer market performance to provide, albeit at a healthier pace, the continued background for growth over the next 2 to 3 years in the retail property market. Our view is that both the consumer and retailer will be focusing more on quality rather than quantity," he said.

Meanwhile, in Hong Kong prime rents were steady during the fourth quarter of 2012 at USD4,335 per square foot per annum to defy a deceleration in retail sales due to current global economic uncertainty.

CBRE said retailers throughout Hong Kong have generally become more selective in their requirements and, the best, prime units are still in high demand, while off-prime or secondary units attract less interest.

Overall, CBRE’s prime retail rankings saw little change during Q4 2012. Prime rents have stabilised at historically elevated levels due to a scarcity of, and preference for, prime space in locations with the greatest degree of visibility. The supply of prime space was tight elsewhere throughout the Asi- Pacific region, which helped maintain rent levels in Sydney, Melbourne, Beijing and Tokyo.

In Sydney, demand from international retailers (especially from the US) is high with many new will brands set to enter the market in 2013.