Global brands eye Sydney New business: International retailers are eying up Sydney's CBD as they look for prime locations to set up shop. More than 10 international brands are set to call Australia home in the coming year, with many sending out scouts to secure prime locations in the key city malls. Marks & Spencer had leasing agents looking in Sydney and Melbourne last week, through the Singapore-based marketer, distributor and retailer of international brands, Royal Sporting House. Hamley's toy shop in London is looking along Sydney's Pitt Street Mall and surrounding streets, as well as Bourke Street in Melbourne and key shopping centres across both states. The popular H&M, Uniqlo and River Island are all said to be vying for the retail site in 383 George Street, Sydney, being developed by Fife Capital as well as the Amalgamated Holdings development between Gowings and the Hilton Sydney in George Street. Knight Frank, director of retail leasing Alex Alamsyah, is leasing the retail space for Fife and said demand was strong for the location and property size. The new labels join the established brands, such as Louis Vuitton, Burberry and Apple, at the corner of King and George streets. But the one caveat to the entry is finding the appropriate sites. Scotch and Soda opted to open in Castlereagh Street near the new ANZ Bank headquarters. United States brands Banana Republic and Old Navy have also sent representatives to Australia in recent times and, with the GAP licence now with Oroton, that label will look to grow its business. There are also the Dolce and Gabbana, Suit Supply and a bigger Hermes stores in the market. Spanish-based Zara is looking to launch homewares in its flagship stores, as well as look for separate sites from the apparel business. Michael Bate, head of retail at Colliers International, said retail in Sydney's CBD was set to take off, with the latest research indicating it was grossly undersupplied, with only 18.5 square metres of floor space per resident, the lowest in the country. Mr Bate said the flood of international retailers setting their sights on Sydney, combined with a number of major developments recently completed or under way, would see the CBD retail zone transformed. The rise in inner-city apartments would also lead to a rise in demand for higher branded shops. "Our research has shown that around 65,000 square metres of new retail space is planned for the city's heart," he said. The CBD retail landscape has undergone much-needed change in recent years with the development of Westfield Sydney, along with refurbishments of major centres, including the Mid City Centre. However, this transformation is not over yet, with major development planned along George Street, within Martin Place and at other key sites around the city, including the MLC Centre. The high demand for the limited stock in Sydney's CBD retail precinct was also highlighted in a recent report from Colliers, which listed Sydney's Pitt Street Mall as the ninth most expensive shopping strip in the world in terms of retail rents. With our appetites for global brands increasing, the 'second wave' of international retailers are on their way to Australia. "Their success is now encouraging the next tier of international brands to bring their labels to Australia as well," Mr Bate said. With the development of so much space in the Sydney CBD, don't be surprised if you see another wave of international brands on our doorstep, particularly a whole new range of luxury brands which are finding Australia an increasingly attractive market. The trend for residential development in CBDs across Australia is also driving the need for more CBD retail space. During the next decade, the Sydney CBD population is expected to grow by more than 10,000, increasing the demand for retail space to support residents' daily needs. Colliers International's managing director of residential, Peter Chittenden said there were about 4900 new apartments either under construction or in the planning process for the Sydney CBD. The York & George development [Fife Capital] was granted planning approval last week, which brings another 199 apartments to the CBD on top of the 1459 apartments within the Barangaroo development. However, such an influx of new residents drives the demand for more cafes, bars and restaurants to support the daily needs of these people, who are unlikely to travel to the suburbs for their retail fix.