What does Hong Kong’s Tsim Sha Tsui ranking reveal about APAC retail?

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Hong Kong's Tsim Sha Tsui Ranking Reflects Varied APAC Retail Performance

Hong Kong's Tsim Sha Tsui has maintained its status as the world's fourth most expensive retail street and the most expensive in the Asia Pacific (APAC) region, according to Cushman & Wakefield's latest report. This enduring position highlights a complex retail landscape across APAC, where overall rental growth has slowed, yet specific markets demonstrate significant dynamism. While Tsim Sha Tsui itself experienced a 6% decline in rents to $1,515 per square foot per year, its high ranking underscores the persistent demand for prime retail locations in the region, even amidst broader economic headwinds.
Tsim Sha Tsui's Enduring Appeal Despite Rental Decline

Despite a 6% decrease in rents, Tsim Sha Tsui's continued top ranking in APAC and fourth globally signifies its resilience as a premier retail destination. This is attributed to steady growth in visitor arrivals and strategic government initiatives aimed at bolstering tourism and developing a "mega events economy." These efforts have successfully encouraged tourist spending and stimulated leasing activity from retail brands seeking prime street locations. The report notes that since the border reopening, key shopping districts in Hong Kong have seen new store openings from brands across the APAC region, reinforcing Tsim Sha Tsui's appeal.
Slowdown in APAC Rental Growth Driven by Regional Factors

Overall rental growth in the APAC region moderated to 2.1% in 2025, a decrease from 2.8% in the previous year. This slowdown is largely attributed to economic pressures in Greater China and Southeast Asia. While specific data on these headwinds is not detailed, the report indicates a broader trend affecting rental performance across these sub-regions. This contrasts with stronger performances observed in other parts of Asia, illustrating a divergence in market conditions within the wider APAC territory.
Indian Cities and Japan Lead Regional Rental Growth

In contrast to the general slowdown, India's Tier 1 cities have emerged as leaders in APAC rental growth. Gurgaon's Galleria Market saw a substantial 25% increase in rents, followed by Connaught Place in New Delhi with a 14% rise, and Kemps Corner in Mumbai with a 10% increase. Japan also demonstrated robust performance, with Tokyo's Ginza and Omotesando experiencing rental growth of 10% and 13%, respectively. These markets highlight pockets of strong demand and limited supply driving rental values upwards, despite the regional average.
Modest Growth in Other Key APAC Markets

Beyond the leading markets, other significant APAC retail destinations showed more moderate growth. Sydney's Pitt Street Mall recorded a 4% increase in rents, reaching $795 per square foot per year, indicating a positive recovery after a period of stagnation. In Seoul, Myeongdong and Gangnam Station saw modest increases of 1% and 4% respectively. These figures paint a picture of a varied APAC retail market, where strong performances in select locations coexist with slower growth or declines in others, reflecting diverse economic influences and consumer behaviours across the region.

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What does Hong Kong’s Tsim Sha Tsui ranking reveal about APAC retail?

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