Hong Kong tops the world in many ways, though not always in a positive sense. Having the most expensive retail rents is one of them.
Thankfully, the crown has been passed on to New York amid a much-needed post-Covid adjustment spurred by changing tourism and shopping trends. But levels are still uncomfortably high for many struggling businesses.
According to the latest survey by a property consultant, the tourist hotspot of Tsim Sha Tsui has slipped to third place globally, trailing New York’s Fifth Avenue and the Via Montenapoleone in the Italian fashion capital of Milan.
But the city still leads the Asia-Pacific region, with Tsim Sha Tsui and Causeway Bay fetching US$$1,493 and US$1,374 per square foot per year, respectively. Along with Central, rents have fallen between 39 per cent and 46 per cent since the pandemic.
This is seemingly a healthy adjustment, even though it may not be welcomed by landlords who were charging exorbitant rents before. It also speaks volumes for changing…