The world’s most expensive street

Hong Kong can lay claim to the world’s most expensive store, after a 12 square metre shop unit in the city’s exclusive Russell Street sold for a staggering $US23 million ($24.9 million), or just over $2 million per square metre.

Sebastian Skiff, property consultancy CBRE’s Asia executive director, believes that the sale has set a new record, outstripping New York’s Fifth Avenue. “I think it’s the most expensive store, per square foot, the world today,” Mr Skiff said

The current tenant sells small electronic goods.

In an interview with Bloomberg, Mr Skiff said that the store is currently on the market for rent at $HK400,000 ($55,900) per month. It’s contributed to establishing Russell Street in Hong Kong’s Causeway Bay as the world’s most expensive street.

Russell Street first topped the ranks in 2012, taking over from New York’s Fifth Avenue, and continues to stay at the top, with high end retailers superseding traditional mainstream chain stores.

“As a brand, its a great place to be,” said Mr Skiff.

Overall, Hong Kong is considered the most expensive city in the world to rent a shop. In its first quarter report into retail rentals, CBRE Global Research and Consulting put the average annual retail rent in Hong Kong at 33,838 euro per square metre, or $49,800.

This compares to 27,336 euro in New York, and 10,663 euro in London.

Australia’s own retail sector lags in comparison. In Sydney, prime retail space goes for $10,300 a square metre and in Melbourne only $8,800.

Leif Olson, director of retail service at CBRE in Sydney said: “Hong Kong has a huge appetite for retail.”

“There is a also huge demand in all Australian capital cities for [small] strata retail. A lot of people can buy them with their super funds and they can be leased out”.

Mr Olson points to other growing strata retail areas around York Street and George Street in Sydney, as well as areas of Melbourne, although he is still amazed by the prices paid in Hong Kong.

“There is appetite in Australia for small retail, but not to that kind of level.