Hong Kong is still the most expensive place to rent prime retail space, according to property consultancy CBRE.
The average rent for a prime shop in Hong Kong stood at US$4,335 per square foot a year in the fourth quarter last year, surpassing second-placed New York, where rents were 46 percent lower at US$2,970. London came in third at US$1,080 per sq ft.
According to CBRE, rents in Hong Kong increased US$1 per sq ft from the third quarter. This means retailers in Hong Kong are paying HK$2,800 per sq ft per month on average for a prime retail spot.
"Local retailers, who are not primarily targeting tourists, cannot afford the increasing rents and in some cases are forced to relocate, which is resulting in less choice in prime districts," says Joe Lin, CBRE's senior director of retail in Hong Kong.