Hong Kong is one of the most expensive cities in the world. It is also a luxurious place to live in. With its sky-high rent, even the likes of celebrity chef Jean-Georges Vongerichten's Italian restaurant Mercato closes down as he refuses to pay an additional rental fee.
Mercato by Jean-Georges closes on November 14. After being in the business for two years, Vongerichten chooses not to renew his lease.
Located in California Tower in Lan Kwai Fong, Mercato opened in 2016. Vongerichten said his restaurant's location is one of the reasons he doesn't renew his rent at a higher price. However, the French chef opts not to disclose neither the place's current rental fee nor the increase his landlord is asking.
In an email sent to the South China Morning Post, Vongerichten says that he and his team will find a new place to rent in Hong Kong. "We love Hong Kong; it's always been an inspiration destination for us," he wrote.
With an association in the city since 1983, Vongerichten already has a lot of friends in town. So, he hopes to return soon. His staff, led by chef de cuisine Anthony Burd, also works with him until Mercato's very last day, although he gives them two months' notice ahead of the restaurant's closure.
Hong Kong has one of the highest rents in the world. In fact, its Causeway Bay tops Cushman & Wakefield's list of world's most expensive retail street by rental value, snatching the crown from New York's Upper 5th Avenue
According to Vietnam News, Hong Kong's Causeway Bay successfully takes the top spot of Cushman & Wakefield's list with its HK$20,952 or about US$2,671 rental fee PSF/Year, despite the 1.5 percent drop in average rents in the country. "The retail market in Hong Kong has experienced a rebound over the last year, driven mainly by a return of mainland Chinese tourists," Cushman & Wakefield's Head of Retail Services Kevin Lam said.
With the boost of tourist arrivals and retail sales during the first quarter of 2018, luxury brand operators once again show their interests to enter the Hong Kong market. However, its stand towards the final quarter is threatened by the continuous trade tensions and the country's "weakened price advantage."
The annual "Main Streets Across the World" report follows 446 of top retail streets all over the world. It ranks each one of them by its prime rental value at Q2 2018 based on Cushman & Wakefield's proprietary data. It includes the list of most expensive streets in 65 countries.
