Asia-Pacific retail property rents jumped in the third quarter, driven by strong domestic spending in China, demand from global brands and low vacancy rates, according to CBRE Group Inc., a real estate services firm.
Rents in the region grew by 7 percent in the three months ended Sept. 30 from a year ago, and 2.4 percent from the previous quarter, according to the group’s Asia-Pacific Prime Rental Index.
“Prime locations remain keenly sought after by international luxury and fast fashion retailers, either looking to expand or enter the region for the first time,” Josh Loudon, Sydney-based regional director for retail services, said in an e-mailed release.
Private consumption in Hong Kong rose 8.8 percent in the third quarter from a year ago, boosted by purchases by tourists from the mainland, according to a government report released on Nov. 11. In Australia, LVMH Moet Hennessy Louis Vuitton SA, Chanel SA and Gucci Group NV are all opening stores in the country, CBRE said.
Prime Melbourne rents surged 25 percent in the third quarter from a year earlier, the strongest growth in the Asia-Pacific region, followed by a 24 percent increase in Hong Kong and Beijing’s 20 percent jump, CBRE said.