Sydney slips down most expensive prime retail list: The 2022 Main Streets Across the World report
Sydney’s Pitt Street Mall was heavily impacted by lockdowns throughout the pandemic. Picture: Toby Zerna
Sydney has continued to slide down the global rankings of the most expensive prime retail real estate locations.
The 2022 Main Streets Across the World report survey’s prime retail performance across the best urban locations in the world’s strongest neighbourhoods.
For a location to rank highly on the list, the locations must demonstrate resilience and profitability in the face of market nuances and the impact of the pandemic.
New York’s Upper Fifth Ave was the highest performing retail area and most expensive in the world.
Head of research at Cushman and Wakefield John Sears says lockdowns played a significant part in the fall of Sydney’s Pitt St Mall on the list.
“Sydney’s Pitt St Mall retail precinct has seen a fall in rents from before the Covid-19 pandemic that has resulted in its global ranking slipping from seven to eight,” Mr Sears said.
The Via Montenapoleone was ranked the third most expensive retail precinct in the world. (Photo by Vittorio Zunino Celotto/Getty Images)
“The ranking has been impacted most significantly by three factors: firstly the lockdowns and border restriction of 2020 and 2021 that reduced foot traffic and tourism to the precinct.
“Secondly, while foot traffic has improved from the lockdown lows, data from the Property Council of Australia show office occupancy is still only less than 60 per cent of its pre-pandemic levels.”
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hopping in Sydney with Black Friday sales just around the corner. People on Pitt Street Mall this afternoon. Picture: NCA NewsWire / David Swift
“Thirdly, the rents are converted to US dollars and euros for the global ranking, over the 12 months to June 2022, the Australian dollar fell around eight per cent compared to the US dollar.”
New York’s Fifth Ave now ranks as the most expensive retail destination in the world, with Hong Kong slipping to second place.
Sydney’s Pitt Street Mall has slipped to eighth on the list of the most expensive retail precincts in the world. Picture: NCA Newswire / Gaye Gerard
Hong Kong itself has undergone a significant change in profitability, with the Tsim Sha Tsui province overtaking Causeway Bay as the most expensive precinct in the city-state.
Third place has been taken by Via Montenapoleone in Milan, followed by London’s New Bond St and the Avenues des Champs-Elysees in Paris rounding out the top five.
Hong Kong’s Tsim Sha Tsui was ranked the second most expensive precinct in the world. (Photo by Philip FONG / AFP)
Cushman & Wakefield’s head of EMEA retail Robert Travers said the conversation about retail had shifted from pessimism to omnichannel evolution.
“Many brands are playing the long game and seeking to secure prime opportunities to adapt to ever-demanding customer needs. With further investment in high-quality in-store experiences and advances in omnichannel approaches, we are confident in the resilience of the sector, particularly at the luxury end, and in key global destination cities.”
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