Hong Kong’s Tsim Sha Tsui shopping strip has lost its place as the world’s second most expensive retail strip in rent terms, displaced by Milan’s Via Montenapoleone.

However, while ranking third globally, Tsim Sha Tsui still head’s the list of Asia Pacific’s most expensive streets with a retail rent of $1493 per sqft per year, according to Cushman & Wakefield’s Main Streets Across the World 2023 report.

Asia Pacific posted the highest regional retail rental growth of 5.3 per cent in the third quarter, according to the commercial real estate services firm.

Following Tsim Sha Tsui in the list of most expensive streets in Asia Pacific is Causeway Bay (main street shops) at $1374 per sqft per year.

Tokyo’s Ginza landed third while Omotesando placed fourth in the region at $912 per sqft per year and $798 per sqft per year, respectively.

Sydney’s Pitt Street Mall, Midosuji in Osaka, Japan, and Seoul’s Myeongdong and Gangnam stations also feature among the most expensive streets.

Meanwhile, Chennai’s Anna Nagar 2nd Avenue and Pondy Bazaar joined the rank of most affordable locations with rents sitting at $22 per sqft per year and $24 per sqft per year, respectively.

While Hong Kong has the greatest potential for recovery following the return of tourists after Covid-related border closures, the report noted that Vietnam, Japan, and India saw substantial growth of 12 per cent to 18 per cent. However, both China’s Xiamen and Shen Zhen dropped more than 20 per cent.

“Retail has continued its path to recovery despite a new wave of post-pandemic challenges as central banks around the world have increased interest rates to tame the current inflationary cycle,” said Dominic Brown, head of international research for Asia Pacific at Cushman & Wakefield.

“In response, economic growth forecasts have been trimmed and consumers have reigned in discretionary spending.”

Globally, retail rents grew 4.8 per cent, with the Americas, Europe, and the US increasing 5.2 per cent, 4.2 per cent, and 3.2 per cent, respectively.