Prime retail rents rose in Bangkok's leading shopping centres but stayed flat in community malls in the second quarter, according to global property adviser CB Richard Ellis (CBRE).
Hong Kong was by far the world's costliest market for global retailers - 40 times more expensive than Bangkok.
"Rental rates in Bangkok have increased in the best shopping malls, especially in the central area," said Jariya Thumtrongkitkul, CBRE Thailand's head of retail services.
CBRE's second-quarter ranking of the top 10 prime global retail markets saw little change relative to previous quarters, but four of the top 10 markets- New York, London, Zurich and Tokyo - saw quarterly increases in prime retail rents compared with only one market in the first quarter.
Historically low construction levels and fierce retailer competition for the best locations are fuelling growth, leading to record-breaking rents in many markets.
Hong Kong (124,650 baht per square metre per month) topped the rankings by a long stretch over New York (87,843 baht per sq m per month), well ahead of third-ranked Paris (35,137 baht per sq m per month).
Despite high rents, retailers continue to establish a presence in Hong Kong, seeking to benefit from a growing luxury retail scene.
CBRE research shows 51 new retailers opened in Hong Kong last year. The territory now has the highest representation of luxury retailers of all global markets.
"Healthy tourist arrivals and a lack of available space make finding an adequate unit in Hong Kong's prime retail locations a major challenge for new and existing retailers," said Joe Lin, the executive director for retail services at CBRE Hong Kong.
Bangkok (3,100 baht per sq m per month) recorded a 3.7% year-on-year rise in average rental rates. Increased tourist arrivals supported retail sales in Bangkok and resort cities.
Due to the strong retail climate in Thailand, many brands are entering the market in the form of owned stores, franchises and distribution deals.
New York displayed a 2.7% quarterly growth rate in prime retail rent levels and 22% year-on-year.
Demand from international retailers remains strong, with tourism driving strong retail sales activity.
In London (33,294 baht per sq m per month), improved consumer confidence, robust sales and increased foot traffic have driven tenant demand.
In particular, the supply and demand imbalance on New Bond Street and Old Bond Street resulted in prime rents for central London rising by 9.1% quarter-on-quarter and 20% year-on-year.
Preference for prime space continues to influence prime rents in Zurich (25,806 baht per sq m per month), where rents rose by 2.2% quarter-on-quarter and 5.6% year-on-year.
A tight supply of prime space and the strengthening of retailer confidence led to a 2% quarter-on-quarter increase in Tokyo rental rates. Viewed as the gateway to Asia by many foreign retailers, Tokyo remains fiercely competitive.
Domestic retailers have also expanded, with some Osaka-based stores enlarging their presence in Tokyo for the first time.
Junichi Taguchi, the managing director for retail services at CBRE Japan, said demand and confidence have improved as the economy recovers.
"Luxury retailers noted a positive push in demand for brand items, which have been recording high sales values in department stores since the beginning of the year," he said.