Related stories

Rules for the Implementation of Regulations on the Management of Foreign Invested Financial Institutes for the People's Republic of China (the Rules) Lane Crawford: The World’s Best Fashion and Art Pass the Flame, Unite the World Bazaar Beliefs: The Dao of the Beijing Antiquarian Provisional Rules on the Administration of Foreign Enterprises Engaging in Design Activities for Construction Projects within the People's Republic of China (the "Rules")

Wangfujing The World's 20th Most Expensive Shopping Destination

Beijings Wangfujing is ranked as the worlds 20th most expensive shopping destination, according to Main Streets Across the World, an annual report published by Cushman & Wakefield, the worlds largest privately held real estate services firm.

Jianguomen in Beijing saw the highest growth in rents with an increase of 14.3 percent year-on-year in the first six months of 2006, with rents rising to US$160 per square metre (sq.m) per month. In Shanghai, rents along both Huaihai Road and Nanjing Road increased by 1.4 percent year-on-year.

Sebastian Skiff, Cushman & Wakefield’s retail head in the Asia Pacific said, In China, the government has recently approved a significant number of applications by foreign retailers, unlocking the doors for a flood of new retailers entering what is one of the worlds most dynamic emerging markets.”

Richard Middleton, managing director of Cushman & Wakefield Greater China, said, “Over the last year, China has continued its economic surge with retail sales growing by almost 14 percent. Despite government attempts to cool the economy, we see no signs of let up in the retail sector in the next few years. Rather, we expect to see even stronger demand from retailers in all sectors leading up to the Olympics, as more international retailers move aggressively into the China market, many for the first time.”

“Beijing has seen the development of a number of new prestigious retail projects over the last year, including China Central Place, New Sanlitun and the Xidan Mall, with more than 100,000 sq.m of retail space set to open by 2007.” said Middleton. “These developments are setting new trends in China as they bring a number of flagship stores which will offer a new experience for Chinese customers.”

Main Streets Across the World 2006 tracks retail rents in the world’s top-233 shopping locations in 47 countries around the world. The report’s global-league table is drawn up by surveying the most expensive locations in each of the countries monitored. This year, the report finds that retail rents have risen or remained stable in 97 percent of the locations monitored.

John Strachan, Cushman & Wakefield’s global head of retail, said: “Shopping is a global activity, from the main streets of Buenos Aires, to New York, Paris and New Delhi. Worldwide, the sector has seen a vibrant year, with new store openings, new formats and retailers entering new markets. In particular, in emerging markets, existing schemes are being refurbished in more developed markets to cater to evolving consumer and occupier demand.”

The world ranking reveals little movement at the top, with New York (Fifth Avenue) retaining its top position, Hong Kong (Causeway Bay) in second place and Paris (Avenue des Champs Elyses) in third place. The biggest riser is the Indian capital of New Delhi, with the most expensive location being Khan Market, having climbed up 17 places to 24th.

India’s retail locations have all seen big rental increases, Sanjay Dutt, executive director for Transaction Services, Cushman & Wakefield in India, said: “The ‘organised’ retail sector in India is forecast to grow by around 40 percent–45 percent on an annual basis over the next five years. Currently it has a mere 2 percent–3 percent share of the total market, but this is foreseen to grow by 12 percent–14 percent by the end of this decade.”

On a regional basis, the Asia Pacific has seen the highest rental increases in local currency terms; rents are up 20 percent for the year to June 2006. Cushman & Wakefield’s Skiff said, “As the most dynamic global market place; Asia has continued to attract quality retailers and retail real estate investors. Over the past year, we have seen brands increasing competition for prime retail space and a corresponding increase in investment into retail real estate. With many of the markets in Asia still considered as emerging economies for international retail, we foresee an upward trend in rents continuing this year, matched with an improvement in the quality of products being made available.”

Looking ahead, Darren Yates, associate, European Research, Cushman & Wakefield, and the report’s author, said: “The demand for modern retail property will continue to grow worldwide, in particular with the opening up of large and increasingly wealthy consumer markets such as India, China, Brazil and Russia, where the demand for consumer goods is growing rapidly along with a need for top-class retailers and high-quality retail facilities.”