Luxury driving rebound in demand for Sydney CBD retail space

A “growing appetite” for luxury brands is driving demand for space in prime Sydney CBD retail locations, according to research from Ray White.

Sydney CBD’s prime retail real estate comprises Martin Place, Castlereagh Street, Park Street and George Street, along with Pitt Street Mall.

According to Vanessa Rader, head of research at Ray White Commercial, an increase in the personal and household goods retailing segment due to an influx of jewellery retailers, which now account for 21.5 per cent of stores, not far behind clothing and soft goods, which account for 31.2 per cent. Services such as banks, communications, beauty and medical contribute 16.1 per cent.

Rader said an increasing number of international luxury brands have converged on the Sydney CBD retail areas during the past two years.

“The growing emphasis on these establishments within our CBD brings a new level of quality and activity back to the city after a difficult few years and now represents 23.4 per cent of our street-fronted shops within our prime retail core.”

Despite rising interest rates, Rader says there is strong demand for luxury brands by consumers, both domestically and from overseas visitors.

The redevelopment of MLC has added brands like Valentino and Messini to Castlereagh Street which has been home to Chanel, Bvlgari, Hermes, Gucci and Prada. Dior has relocated to this precinct area while Cartier secured a new flagship location on George Street.

King Street now features Hublot, Panerai, Tiffany & Co and Chaumet.

The post Luxury driving rebound in demand for Sydney CBD retail space appeared first on Inside Retail.