As a shopping destination, Hong Kong has over the past decade charted a course towards the very high-end in brands — and it seems retailers are now paying a very expensive price for the trend.

With a 46 percent rise in rents, quarter on quarter, Hong Kong is now second only to New York in terms of what tenants pay for retail locations across the city.

Hong Kong last year surpassed Sydney as the second-most expensive city in the world, with the average cost being paid now hitting US$1,687 per square foot per year according to global commercial property company CB Richard Ellis.

Tokyo’s Inner Central District overtook London’s West End to become the most expensive office location in the World – with an occupancy cost of $183 per sq. ft. – according to the CB Richard Ellis global office cost survey.

Moscow, Hong Kong’s central business district and Tokyo’s outer central district were in third, fourth and fifth position.

Financial centres around the world have been hit by declining occupier demand. In many cases office occupancy costs have dropped by 20% or more over the last 12 months.