Sydney, Australia, June 19, 2010 --(PR.com
)-- Sydney’s developing Pitt Street Mall experienced the world’s highest rent rise over the last 12 months, increasing a staggering 71.43 per cent to record an average rate of US$8,084/sq m, according to latest Colliers International research.
The Colliers International Global Retail Report Spring 2010 shows Pitt Street Mall’s rate spike is significantly higher than that recorded in London’s Bond Street, increasing 51.66 per cent to US$12,346/sq m, and Albania’s Myslym Shyri in the capital of Tirana, increasing 40.63 per cent to US$891/sq m.
Conversely, rents in Dubai’s premier Sheikh Zayed Road plunged minus 68.98 per cent to settle at just US$357/sq m, followed by IIlica Street in Zagreb, Croatia falling minus 53.33 per cent to US$1,109/sq m and Kneza Mihalia in Belgrade, Serbia falling minus 50 per cent US$1,585/sq m.
Nerida Conisbee, Colliers International Director of Research, says the rent rise has placed Pitt Street Mall the sixth most expensive retail corridor in the world with Paris’ lauded Champs Elysees taking poll position at a rate of US$13,205/sq m, followed closely by New York’s Fifth Avenue at US$13,143/sq m and Hong Kong’s Russell Street at Causeway Bay at US$12,674/sq m.
“Elsewhere in Australia, rents within Adelaide’s Rundle Mall rose by 7.27 per cent to US$2,650/sq m and Melbourne’s Bourke Street Mall remained steady at US$4,716/sq m,” she said.
“Rents in Perth’s Hay Street and Murray Street Malls dropped slightly by just over a quarter of a per cent to US$3,189/sq m, while Brisbane’s Queen Street Mall dropped 20 per cent to US$3,593/sq m.”
Nathan Clark, Colliers International National Director of Retail Agency, says although a move to discount retail is apparent in many countries; luxury retail is still a viable sector and one that is in a long-term uptrend.
“With the global economy gaining traction and credit markets improving, retailers with a strong balance sheet are quickly gaining the confidence to expand into markets previously viewed as too expensive or difficult to penetrate,” he said.
“The global economy is set to grow 4.2 per cent this year, according to the International Monetary Fund, helping financially healthy retailers to expand and spurring international brands to enter new markets.
“In Australia, Westfield and Bovis Lend Lease are actively luring global fashion brands as icon tenants for their new Pitt Street Mall centres.”
The current transformation of the Pitt Street Mall is the most significant change the city has seen in decades, with Westfield developing 40,000sq m of retail space over seven levels, equating to around 250 shops, and Bovis Lend Lease refurbishing its 9,000sq m Mid City Centre.
Mr Clark says with the emergence of a sizeable middle class in Asia Pacific, Middle East and central and Eastern Europe, these ‘aspirational’ consumers will be a key source of growth for many luxury retailers.
“High-end consumers are beginning to resume their big spending ways after nearly a two year hiatus, and Australia will continue to cement itself as a major player in the global retail market,” he said.