August 24th, 2012
02:31 AM GMT
Hong Kong (CNN) – The glitz and prestige of New York’s 5th Avenue makes it one of the most famous streets on the planet. But a torrent of mainland China visitors and a rental war among global brands will soon push the property prices in Hong Kong’s Central district higher than New York’s most expensive address.
As CNN’s Ramy Inocencio reports, Colliers predicts that by 2014, the average retail space in Hong Kong’s Central district (pictured above, left) will eclipse the $2,600 square foot price of New York’s 5th Avenue (pictured above, right). Presently, the average price is about $1,800 per square foot in Central, but prices have been zooming higher as retail brands jostle for prime real estate in this tightly packed territory.
As Ramy reports, the prize in this rental arms race is mainland Chinese customers who stream into Hong Kong.
At this rate, Hong Kong will soon have the priciest real estate on the planet. But is it worth it? Will the rental rates continue skyward, or is a crash coming?
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