Australian CBDs record steepest declines in prime retail rents in APAC

Sydney and Melbourne, in particular.

Half of the Asia Pacific retail markets tracked by CBRE have registered a decline in prime rents since the pandemic; a trend that has spurred upgrading and expansion demand, including from retailers seeking more experiential-driven stores.

Here’s more from CBRE:

The strongest decline in prime retail rents has been recorded in Australia’s CBDs, particular Sydney and Melbourne. In contrast, the decline in prime rents in Hong Kong SAR has been relatively mild, as the correction began in 2014 on the back of changing preferences among mainland Chinese tourists. Nevertheless, rents in this market currently stand at just one-third of their peak.

With these markets having become more affordable, more retailers can expand their footprint and test new concepts, while others return to the market after a period of absence.

Despite retail rents in Bangkok remaining stable over the past few years, the city’s relatively cheaper rents and ample supply of quality retail space are providing room for smaller retailers to expand.