Mixed development. Staying on top of a mall. Are you still very interested?
It was very a very attractive proposition; staying on top of a mall
I remember very clearly just 8 years ago or maybe 10 years ago, suddenly it was a very attractive idea to buy a unit on top of a mall. What happened next was that many mixed development project came into the market and well, then they discovered that some of these malls did not attract enough visitors and soon, the malls were a deserted except for the typical supermarket and some retail lots selling cheap stuffs. Then people start to be wary and will now ask what is the actual plan for the mall, who is going to manage it etc.
If we reverse the process; make the mall successful first?
Okay, what would happen if the mall was successful first, then only the developer build residential units to take advantage of the successful mall? Surely some of the frequent shoppers may want to buy a unit so that they can shop at the SAME MALL daily? Okay, it actually still looks like a better idea versus buying without knowing if the mall will be successful or not in the future.
Article in nst.com.my The owner of Canada’s most valuable shopping mall is planning to add apartment buildings to that property and two others around Toronto, creating mixed-use neighborhoods that invite renters to live where they shop.
Oxford Properties Group’s plans for rental apartment towers at Yorkdale Shopping Centre, Canada’s most productive mall by sales per square foot, are still in an early stage, chief executive officer Michael Turner said.
But construction has begun at the Square One Mall in nearby Mississauga, he said, and municipal authorities are evaluating a proposal for Scarborough Town Centre in Toronto’s east end.
“We’re starting to go vertical,” Turner said Tuesday in an interview at Bloomberg’s New York headquarters. “I can assure you that what you see today is not what they’re going to look like over the coming decade or two. Please do read the full article with a lot more information here: Article in nst.com.my
Just remember, the PRICE comes first whether mall or no mall
If the mall is a successful one and we own a unit on top of the mall, we may love to stay there or many travellers would love to stay there. So it can be for own stay or it could be for homestay. As long as the mall is successful, renting it out should be very easy. So, the price of the unit will carry some premium versus another unit without a mall right below it.
Just remember that if we bought the unit with a very high premium versus other similar units nearby (walking distance to the mall), then this will not be a good decision. Think about it, walking a few minutes to the mall versus taking the elevator down, how much would the future buyer be willing to pay for it.
If one is renting a unit, one is on top of the mall and it is 20% higher rental per night. Another one is walking distance but is 20% lower rental every night. Whatever your answer is, that’s how much you should be willing to pay for that unit on top of the mall. Happy deciding yeah.
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