A slowdown in luxury spending in China has helped New York's Fifth Avenue regain its title as the worlds' most expensive shopping street.
According to the latest report from property services firm Cushman & Wakefield rents reached a record $3,500 a square foot a year – making Fifth Avenue the world’s costliest retail destination beating last years' winner - Hong Kong’s Causeway Bay.
Hong Kong's most expensive street saw rents fall by 6.8 per cent in the last year which was blamed on a slowdown in demand since the Chinese government crackdown on lavish spending hit the perfomance of luxury goods brands.
James Hawkey, head of retail in Asia Pacific at Cushman & Wakefield, said: “In 2014, retailers showed caution expanding in Hong Kong in the face of moderating sales performance and less exuberant consumption from mainland visitors.
Luxury brands were conservative. The beginning of the ‘Occupy Central’ protest in Hong Kong since the end of September has further weakened the retail sentiment in major core retail areas, especially in Causeway Bay and Mong Kok where students are still blocking some major roads.”
London's most expensive street - New Bond Street - retained fourth place in the rankings where rents rose by 4.2 per cent to $1,216 a square foot a year.
While Paris came in third after a flat year for Champs-Élysées, following a 40 per cent rise the previous year.
Cushman & Wakefield said North America's main cities were strong across the board and its head of retail in the Americas, Matt Winn, said: “Positive economic news, combined with healthy retailer fundamentals, continued to filter through into the US retail market.
"Prime rents over the year to September were up an impressive 10.6 per cent on the same period last year. The arrival of brands such as Microsoft, which announced plans for its first flagship store in New York’s Upper Fifth Avenue, further underlined the importance of these premier shopping destinations.”
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