This Australian mall is the 8th most expensive retail destination globally

Retail rents across Asia Pacific increased by 2.1% in 2025.

Asia Pacific’s prime retail streets are showing resilience despite a slower pace of rental growth, as standout markets in India, Japan and Australia offset softer conditions in parts of Greater China and Southeast Asia, according to a new report by Cushman & Wakefield.

The consultancy’s latest Main Streets Across the World report ranked London’s New Bond Street as the world’s most expensive retail destination for the first time, after rents surged 22% year on year to US$2,231 per square foot per year. While Europe and the Americas led global rental growth, Asia Pacific recorded a more modest 2.1% increase in 2025, down from 2.8% a year earlier.

Cushman & Wakefield said the slower regional performance masked wide divergence across Asia Pacific markets. India’s Tier 1 cities were the strongest performers globally, led by Gurgaon’s Galleria Market, where rents jumped 25%. Connaught Place in New Delhi saw a 14% increase, while Mumbai’s Kemps Corner rose 10%.

Japan also delivered robust growth, with Tokyo’s Ginza and Omotesando posting rental increases of 10% and 13% respectively, supported by strong tourism flows and demand from global luxury brands.

In contrast, rents in Hong Kong’s Tsim Sha Tsui fell 6% to US$1,515 per square foot per year, reflecting ongoing economic headwinds in Greater China. Several Southeast Asian markets also remained under pressure amid geopolitical uncertainty and cautious consumer spending, the report noted.

Australia showed renewed momentum, with Sydney’s Pitt Street Mall recording a 4% year-on-year rise in rents to US$795 per square foot per year. The gain marked a return to positive growth after years of stagnation and cemented Pitt Street Mall’s position as Australia’s most expensive retail strip and the eighth priciest globally.

Across the region, Sydney ranked sixth, ahead of Melbourne’s Collins Street and Brisbane’s Queen Street Mall, both of which remained stable. Cushman & Wakefield said tight vacancies in prime locations are driving spillover demand into adjacent streets as retailers seek proximity to flagship shopping precincts.

Sona Aggarwal, Asia Pacific head of retail sales and strategy at Cushman & Wakefield, said the region continues to demonstrate resilience despite uneven economic conditions.

“India, Korea and Japan are leading growth with strong demand and premiumisation, while confidence is picking up in markets such as Singapore and Sydney,” she said. “Although Vietnam and parts of Greater China remain soft, shifting shopper habits and highly adaptive retailer strategies, particularly in ‘phygital’ experiences, keep Asia Pacific poised for long-term growth.”

Globally, Cushman & Wakefield said prime retail corridors continue to benefit from resilient economic growth, easing cost-of-living pressures and renewed appetite for discretionary spending, reinforcing the enduring appeal of the world’s leading shopping streets.