Hong Kong has overtaken New York City as the most expensive shopping area in the world, according to Cushman & Wakefield.

Retailers located in the booming luxury area of Causeway Bay paid an average of $2,630 per square foot for the 12-month period between June 2011 and June 2012, a stunning increase of 34.5 percent over the previous year.

Other shopping areas in Hong Kong are also booming thanks to an estimated 30 percent sales growth. Tourists and mainland residents are helping drive demand for luxury handbags, watches and jewelry.

New York City, Paris and Tokyo also saw growth. London's Bond Street slipped off this year's list on weak national demand.