Retail rents jump 32% in Melbourne

SYDNEY: Retail rents in Melbourne surged 32.3% in the year to September, the third fastest growing market behind Hong Kong and Beijing, fuelled by international tenants tapping the market, said property services firm CBRE.

Against the backdrop of its relatively healthy economy, Australia has lured a number of high-profile international retail brands.

Zara, owned by the world's biggest fashion retailer Inditex SA, opened stores in Melbourne and Sydney this year, while UK fashion retailer Topshop is opening its store in Melbourne next month.

In the third quarter this year, Sydney was the third most expensive retail market globally and Melbourne ranked eighth, while New York retained the top spot to be the world's expensive shopping destination, CBRE said.

Still, CBRE expects Australian markets to slip down the rankings next year partly due to the record levels of outbound tourism and increasing labour and utility costs.

Globally, total retail rents edged down 0.6% quarter-on-quarter in the third quarter, with rents in the Americas dropping 2% while those in the Asia-Pacific, Europe, the Middle East and Africa regions remained flat, according to CBRE.

By Reuters