Knight Frank Malaysia: Not many are spending and yet more retail space is coming

Knight Knight Frank Malaysia: Not many are spending and yet more retail space is coming

Are there too many malls in the Klang Valley?

Some would say yes, some would point out that many malls are no longer doing well. Some would point out the anchor tenants are moving out of some malls. Some malls could not even fill their units on the ground floor. So, is this a sign for too many malls?

Just need to also try and drive to MidValley megamall, 1Utama mall and Sunway Pyramid mall (the typical three) and tell me if it’s easy to find parking space or hard to find. You will get your answer yeah. Even as some malls which are not competitive are closing down, there are many malls which are profitable and continue to have a long queue of tenants who wants to lease a space too.

Article in Yahoo News Knight Frank Malaysia says that weak consumer appetite for spending could weigh on the retail property sector for the rest of the year, with the addition of more retail spaces causing concern about a worsening glut“Retailers are grappling with escalating costs across multiple fronts, including manpower, electricity, and rentals,” it said.

“The increase in SST rate to 8 per cent is heightening consumer caution, while fuel subsidy rationalisation is expected to inflate operational costs, potentially impacting sales revenue and necessitating price adjustments.”

Still, most of Klang Valley’s major malls remain profitable.

Knight Frank said shopping icons in the capital city such as Suria KLCC and Pavilion Kuala Lumpur still command average monthly gross rentals of RM41 per sq ft and RM30 per sq ft. These malls enjoyed commendable occupancies of 96.0 per cent and 95.2 per cent respectively.

Meanwhile, Mid Valley Megamall and The Gardens Mall command average monthly gross rentals of about RM18 per sq ft (2022: RM17 per sq ft). The occupancies of these malls remain high at approximately 99.9 per cent. Please do refer here for the full article: Article in Yahoo News

My shopping lifestyle these days?

Every time my children tells me something they need or want to buy or when I promise them rewards for good academic achievements, I would usually look online at shopee.com Going to the malls to look for the items is usually not the first thought in my mind. In other words, when I spend on buying things, it usually happen online. Do I still visit malls then? Yes. It’s also a firm yes.

The reason is because when I visit malls, I am able to touch, compare, feel the items and I continue to buy many things from the shops rather than online and these include clothes, shoes, health products and more. What about you? It seems that many may be like me. Thus perhaps when we speak about retail or even for malls, the question is always do they offer something which is beyond online.

Happy shopping.

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