I think I am one of those who visits IKEA a few times every year. Unfortunately, it is not because I was buying a few properties every year. (Would be great if I could but a working professional earns only so much…) It was only because I like to browse for ideas and gauge the current sentiment, for the existing and new home owners. IKEA as all of us know is NOT a necessity and thus when everyone has no money, it would be foolish to cut food and buy IKEA instead. Haha. Yes, when the queues remain long, we are still safe, I hope. Those buying still have their jobs and they are buying IKEA furnitures because they have already fulfilled their basic needs.
Malaysia will have its 3rd IKEA store in Tebrau, Johor. To Penangites, the IKEA in Batu Kawan would thus be the 4th in Malaysia since it will only open in 2018. IKEA Southeast Asia managing director Christian Rojkjaer said, “We have watched the development of the city for some time and are impressed with the infrastructure that is being built. We chose Johor Baru because we want to play a role in the development of the city.” I think this is a good endorsement of the viability of a longer term investment environment. IKEA will only be building in places where the queues would continue building up days after days.
The investment would be RM592 million and is expected to open by end 2017. It will provide over 300 jobs as well as the potential business opportunities. It will have a total space of 46,713 square metres. (YES, huge). It said that it will serve 1.8 million people who live in the area. I think it would definitely attract many Malaccans too. Haha. In fact the expectations is for a total of 6 million visitors annually which is only slightly below its Damansara store at 7 million. As for whether it would compete with Singapore, seriously if I own a home in Singapore, I’d buy in IKEA Singapore lah. Of course, exchange rate may help IKEA Tebrau more.
written on 17 Sept 2016
Next suggested article: Who says don’t buy Johor property market? You should buy!