(Company corrects to say Hong Kong accounts for the top three most expensive areas in Asia in first paragraph, rents numbers throughout in story published Nov. 29.)
Nov. 29 (Bloomberg) -- Hong Kong accounted for the three areas with the highest retail rents in the Asia-Pacific region, according to Cushman & Wakefield Inc.
The Causeway Bay district tops the company’s survey with annual rent of $2,001 per square foot at the end of the third quarter, Cushman said in an e-mailed statement. The Central business district is second at $1,624, it said.
Increased spending by cashed-up Chinese tourists and the addition of new shopping venues have driven up prime street shop rents in Hong Kong, a former British colony returned to China in 1997. Chinese tourists visiting Hong Kong jumped 18 percent to 4.1 million in August from a year earlier, the first time the figure has surpassed the 4 million-mark, according to the city’s tourism board.
The growth in tourist arrivals “will further attract foreign brands to the market,” Cushman said in today’s statement. It will enable “landlords to remain on the favorable end of negotiations.”
The Link Real Estate Investment Trust, Hong Kong’s biggest property trust with more than 180 malls and garages in the city, said this month that total income for distribution to unit holders in the six months ended Sept. 30 rose 21 percent from a year earlier on the back of rising retail rental revenue.
The Tsim Sha Tsui district ranked third in the survey, with annual rents of $1,463, Cushman said.
--Editors: Linus Chua, Andreea Papuc
To contact the reporter on this story: Kelvin Wong in Hong Kong at firstname.lastname@example.org
To contact the editor responsible for this story: Hwee Ann Tan at email@example.com