Sydney's Pitt Street Mall has remained the world's 7th most expensive retail precinct by country according to rankings data from Cushman and Wakefield.
Rents remain steady at A$14,000 per square metre.
Pitt Street Mall has maintained its premium position with relatively flat rental growth and an ongoing uplift in online retail sales.
Strong foot traffic and the increased demand for experiential shopping is supporting rents and most retailers continue to trade strongly within the precinct, particularly in the high-end luxury category.
Rankings for the Asia Pacific region shows Pitt Street was third most expensive behind Hong Kong's Causeway Bay and Tokyo's Ginza district, with Melbourne's Bourke Street Mall climbing the APAC rankings from 6th to 5th at A$7,000 per square metre.
Brisbane's Queen Street has held its position as the 8th most expensive in the APAC region, with retail rents averaging A$4,500 per square metre.
Despite rents in some parts of the Australian market softening, most notably in CBD strip retail areas, rents in higher footfall locations such as Pitt Street and Bourke Street have held firm.
Precincts such as Sydney's George Street has recorded significant rental growth on the back of the forthcoming light rail project, with multiple new precincts under development.
Cushman and Wakefield Australia and New Zealand's national director of retail leasing Matt Hudson said demand for bigger stores has been strong in Australia.
“Encouragingly, demand for large stores has been strong.
“There are various examples in CBD locations where multiple smaller units have been consolidated into a larger flagship store, in order to drive sales and improve staff efficiency.
“A number of key locations are under development and currently seeking large scale flagship tenants, which is providing heightened competition for key shopping malls which do not offer the street or brand exposure of a flagship location.
“In Sydney, there are also a minimum of 6 new retail precincts under development in and around the CBD, providing an opportunity for retailers to expand out of the mall spaces and establish a standalone presence, customising the in-store experience.”
Director of retail leasing Michael Di Carlo said that there has been a rise in landlord incentives across Melbourne but prime positions such as Bourke Street Mall aren't reaping these benefits due its high foot traffic.
“Bourke Street Mall remains one of the highest foot traffic locations in the Melbourne CBD with circa 22 million visitors annually.
“This level of pedestrian traffic flow has remained consistent over the past 3 years and supported an influx of non-apparel retailers entering the mall, with the most recent additions including Michael Hill Jewellers, Pandora and Vodafone.
“With continued growth in online sales and uncertainty in consumer confidence, there has been a general increase in retailer requests for break clauses and/or shorter leases.
“This is evident in the rise of small businesses opting for 'try before you buy or lease' options via pop up retail licenses.
“Landlord incentives such as capital contributions and rent free periods are also increasing across the city, however prime positions such as Bourke Street Mall and Paris end Collins Street remain low.”
The annual 'Main streets across the world' report tracks 441 of the top retail streets around the globe, ranking them by their prime rental value.
It includes a list of the top 65 streets around the world based on one entry per country.