Pitt Street Mall dubbed most expensive retail strip in Oz

Sydney’s Pitt Street Mall is still one of the world’s most expensive strips to rent retail space. Photo: Bloomberg

Sydney’s Pitt Street Mall ranked most expensive shopping strip in Australia

Emily Hutchinson|1 hour ago

Sydney’s Pitt Street Mall has reaffirmed its status as Australia’s most valuable retail address, ranking as the eighth most expensive shopping strip in the world for the second year in a row according to Cushman & Wakefield’s latest Main Streets Across the World report.

Australia’s housing market continues to rank among the world’s most expensive, and the report signals that our retail property is just as significant on the global market.

CRN-retailmain — Sydney's Pitt Street Mall recorded headline rents of $US795 or $A1193 per square foot per year. Photo: Anna Kucera

Pitt Street Mall recorded headline rents of $US795 ($1193) per square foot per year, climbing 4 per cent year-on-year and further distancing itself from its regional competitor, Seoul’s Myeongdong. The rent gap between the two widened from 17 per cent to 22 per cent over the past year.

Cushman & Wakefield’s head of international research, Dr Dominic Brown, says Pitt Street Mall continues to command strong interest from global luxury and flagship retailers and its performance underscores Sydney’s importance within the Asia Pacific retail hierarchy.

“Pitt Street Mall remains the jewel in Australia’s retail crown,” he says. “Its resilience and recent rental growth reflect strong demand for flagship locations where global brands want to be.

“Tight vacancy means competition is fierce, and we’re seeing spillover into adjacent streets like Castlereagh as retailers seek proximity to prime trade.”

2A2A0161_pnndlr — Shoppers pass outside Myer's flagship NSW store in Sydney's Pitt Street Mall. Photo: James Alcock

Across the region, Sydney ranks sixth in the Asia Pacific, ahead of Melbourne’s Collins Street (17th) and Brisbane’s Queen Street Mall (25th), both of which held steady over the year. Spillover demand is also emerging in these markets, with brands broadening their search into high-quality secondary precincts such as Collins Street East in Melbourne and Edward Street in Brisbane.

Daniel Radle, Cushman & Wakefield’s national head of retail leasing and management, notes that despite stable rental movements, demand for premium frontage remains robust.

“Melbourne continues to attract premium brands, supported by its heritage appeal and strong luxury positioning,” he says. “With limited availability in prime locations, more retailers are now exploring nearby precincts that offer quality trade and strong footfall.”

New_Bond_Street_London_lc9gcq — New Bond Street in London took first place as the world's most expensive shopping street in which to rent retail space.

Internationally, 58 per cent of tracked retail streets saw rents rise over the past year as consumer spending stabilised and brands doubled down on physical retail strategies. The Americas led regional rental growth at 7.9 per cent, driven by currency effects in South America. Europe experienced a steady 4 per cent year-on-year growth, with standout performances in Budapest and London. Rents in Asia Pacific slowed to 2.1 per cent, with strong growth in India and Japan offset by economic headwinds in greater China and South-East Asia.

London’s New Bond Street earned its place as the world’s priciest retail destination ($US2231 or $3439 per square foot per year) following a 22 per cent surge in rents. Its leap to the top spot reflects surging demand for luxury retail space, overtaking Milan’s Via Montenapoleone and New York’s Upper Fifth Avenue.