MPIG
  • Home
  • New Property Launch
    • Best Investment 2022 PJ Damansara Low Risk Low Entry Price High ROI
    • 2022 PJ Rumah Mampu Milik RM270k Damansara
    • Bangsar South 2 Rooms from RM390k BELOW Market Price
    • 10% ROI PJ Project near Ikea and One Utama Mall
    • Mid Valley Seputeh New Launch
    • Pavilion Damansara Heights 柏威年 白沙罗岭 马来西亚 吉隆坡 精选楼盘
    • 马来西亚RM300千的PJ屋子-首购族,年轻人月入3千能买房
    • 2021 Penang Most Awaited Project
    • 2021 New Launch - KL Metropolis
    • 2021 PJ Spacious and Affordable 5 Star Condo
    • Freehold LRT Linked 3 Room Suites in Glenmarie
    • New SPACIOUS Kepong Landed 6 Room 6 Bath
    • Bangsar Last Piece Land New Launch
    • Avara Seputeh (Mid Valley)
    • Project Announcement Registration. Malaysia New Property Launch
  • Existing & Past Project
    • 2020 Lowest Risk & Price in Klang Valley with Great ROI
    • Kiara East Suite Dex
    • 2019 SAFEST PROFITABLE HIGH CASHBACK INVESTMENT
    • Best Property Investment Projects in 2018
    • KL City Freehold Spacious Affordable 3 room Project
    • Jalan Kuching Freehold New Office & Shoplot
    • Jalan Ipoh New Freehold Shoplot & Offices
    • RM300k KL Sentral New Prelaunch
    • The Olive Condo, Sunsuria City
    • Prelaunch Landed House Bukit Rahman Putra
    • RM260k No Downpayment Puchong South Suites
    • PJ North RM400k High Cash Back Project
    • Denai Sutera @ Alam Sutera, Bukit Jalil
    • First Phase of Banting New Township
    • Neu Suites 3rdNVenue @ Embassy Row by Titijaya & CREC
    • COURT 28, Jalan Ipoh KL City New Property Launch Service Apartment. Malaysia New Property Launch
    • Semanja Kajang New FREEHOLD Kajang Double Storey Houses. Malaysia New Property Launch
    • M Suite @ Desa Park North
    • BIJI LIVING @ Sek 17 PJ City by Conlay. Malaysia New Property Launch
    • Amani Residence Bandar Puteri Puchong New Freehold Service Apartment. Malaysia New Property Launch
    • SFERA RESIDENCY @ Puchong South. Malaysia New Property Launch
    • KL North Last Release
    • PreLaunch Freehold Double Storey
  • LAND
  • News & Articles
    • Educational Articles
    • Ho Chin Soon Greater KL Map Sharing
  • Other Reference Link & Services
    • Land Sale Malaysia
    • Malaysia New Property Launch
    • Lets Buy Property Malaysia
    • Other Professional Services
  • Referral
  • Career
  • MPIG
    • About Us
    • Contact Us
  • Get Professional Advice
  • PJ八打灵2021全新地产项目分析手册

News Updates & Article sharing

Too many MALLs and too much competition

8/16/2016

0 Comments

 
This is expected since years back with so many malls being build within a short distance. Take into example of PJ, there have Paradigm Mall, One Utama, Ikano, E-Curve, Encorp Mall, Citta Mall, Evolve Mall etc.

As for Sunway and Subang area, there have Sunway Pyramid, Subang Parade, Empire Shopping Gallery Subang, SS15 Courtyard, Main Place USJ, One City, The 19 USJ City Mall, The Summit (Under Renovation), Subang Avenue, USJ Wholesale CIty Mall, da:men and etc

The competition is so ​stiff for the retailers, business is tougher to survive. If retailer cannot survive, so do the malls. Just like last week case, Perda City Mall in Bukit Mertajam, Penang, suddenly shut down after a mere 18 months in business. 

If there is more malls to come, expect more of this to happen until economy is turning better. 


The following article referred from The Edge Malaysia on Aug 8, 2016 written by Vasantha Ganesan

More shopping centres to go on sale
WITH saturation and lower retail sales, the number of shopping centres that have been put up for sale or have been sold has been visibly higher over the past nine months. And this trend is expected to continue.
Data tabulated by The Edge (see table) reveals that during the period, the combined value of shopping centres advertised for sale, reported to be for sale or confirmed sold was an estimated RM3 billion. The real value could be much higher as many deals did not require an announcement to be made or the agent may have signed a non-disclosure agreement while seeking a buyer.

Lek Chay Tong, executive vice-president of research and consultancy at Savills (Malaysia) Sdn Bhd, attributes the rise in the number of shopping centres put up for sale to increased speculative mall development in the past five years.

Once mall development becomes speculative, oversupply kicks in, he tells The Edge, adding that this led to over-geared property developers disposing of their mall assets.

“Many malls have been developed by developers and not mall owners. These developers do not have (any) mall management expertise and thus, they prefer to sell (their malls) off,” says Stanley Toh, director of valuation at real estate agency firm LaurelCap Sdn Bhd.

Toh explains that in a mixed development, the developer’s profit is hidden in the mall portion of the project.

“For example, in an integrated development with serviced apartments and a retail mall, the apartment blocks are sold and the developer makes his profit from this. However, because he still retains the mall, the profit is stuck in the mall portion. In order to realise the profit, the developer would have to sell the mall,” he says.

“Going forward, we can expect to see more retail asset deals,” Toh adds.
He says previously, developers who built malls would sell them with ease as they had ready buyers. Often, the sale would be concluded quietly and go unnoticed. “But in this slow market, we are seeing owners hiring agents to sell the properties as it is more difficult to divest the properties (themselves).”
Toh adds that many of the malls are largely vacant or have poor rental rates, which translates into poor yields. In some cases, the malls are virtually empty.

Whether a mall vendor can find a buyer hinges on the selling price. “Most retail mall purchasers are either real estate investment trusts or foreign funds. Mall investors are looking at a net yield of 7%. With the current depressed rental rates, in order to hit a 7% net return, the selling price has to be lower as well,” he says. This does not work in favour of the seller.

Generally, good malls that have a market are not for sale, and malls that are up for sale do not have a market, says Savills Malaysia’s Lek. In such an environment, it is not unusual to see owners of successful malls saying, “at the right price, everything is for sale”.

​Large mall developers that want to carry on with their project need to seek an alternative in the current soft property market. “For some of the larger malls measuring over one million sq ft in net lettable area, the developers are looking for joint-venture partners, specialist operators or, in some cases, other sources of funding. That’s because the malls are finding it difficult to achieve high rent in the first term (as competition has intensified) to justify their infrastructure cost and cost of construction,” says Lek.
Picture
0 Comments



Leave a Reply.

    MPIG News 

    In this section we will be sharing on articles & news update related real estate and some other interesting topics.

    Archives

    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    May 2020
    April 2020
    March 2020
    February 2020
    November 2019
    October 2019
    July 2019
    May 2019
    April 2019
    March 2019
    February 2019
    December 2018
    November 2018
    October 2018
    August 2018
    July 2018
    June 2018
    May 2018
    March 2018
    February 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    December 2014

    Categories

    All

    RSS Feed

Thank you for visit our website. We proudly present you our official MPIG homepage.
We wish you a pleasant experience on surfing the website.


Hours

M-S: 9.30am - 9pm

Telephone

+60 12 3760864

Email

mpighome@gmail.com
  • Home
  • New Property Launch
    • Best Investment 2022 PJ Damansara Low Risk Low Entry Price High ROI
    • 2022 PJ Rumah Mampu Milik RM270k Damansara
    • Bangsar South 2 Rooms from RM390k BELOW Market Price
    • 10% ROI PJ Project near Ikea and One Utama Mall
    • Mid Valley Seputeh New Launch
    • Pavilion Damansara Heights 柏威年 白沙罗岭 马来西亚 吉隆坡 精选楼盘
    • 马来西亚RM300千的PJ屋子-首购族,年轻人月入3千能买房
    • 2021 Penang Most Awaited Project
    • 2021 New Launch - KL Metropolis
    • 2021 PJ Spacious and Affordable 5 Star Condo
    • Freehold LRT Linked 3 Room Suites in Glenmarie
    • New SPACIOUS Kepong Landed 6 Room 6 Bath
    • Bangsar Last Piece Land New Launch
    • Avara Seputeh (Mid Valley)
    • Project Announcement Registration. Malaysia New Property Launch
  • Existing & Past Project
    • 2020 Lowest Risk & Price in Klang Valley with Great ROI
    • Kiara East Suite Dex
    • 2019 SAFEST PROFITABLE HIGH CASHBACK INVESTMENT
    • Best Property Investment Projects in 2018
    • KL City Freehold Spacious Affordable 3 room Project
    • Jalan Kuching Freehold New Office & Shoplot
    • Jalan Ipoh New Freehold Shoplot & Offices
    • RM300k KL Sentral New Prelaunch
    • The Olive Condo, Sunsuria City
    • Prelaunch Landed House Bukit Rahman Putra
    • RM260k No Downpayment Puchong South Suites
    • PJ North RM400k High Cash Back Project
    • Denai Sutera @ Alam Sutera, Bukit Jalil
    • First Phase of Banting New Township
    • Neu Suites 3rdNVenue @ Embassy Row by Titijaya & CREC
    • COURT 28, Jalan Ipoh KL City New Property Launch Service Apartment. Malaysia New Property Launch
    • Semanja Kajang New FREEHOLD Kajang Double Storey Houses. Malaysia New Property Launch
    • M Suite @ Desa Park North
    • BIJI LIVING @ Sek 17 PJ City by Conlay. Malaysia New Property Launch
    • Amani Residence Bandar Puteri Puchong New Freehold Service Apartment. Malaysia New Property Launch
    • SFERA RESIDENCY @ Puchong South. Malaysia New Property Launch
    • KL North Last Release
    • PreLaunch Freehold Double Storey
  • LAND
  • News & Articles
    • Educational Articles
    • Ho Chin Soon Greater KL Map Sharing
  • Other Reference Link & Services
    • Land Sale Malaysia
    • Malaysia New Property Launch
    • Lets Buy Property Malaysia
    • Other Professional Services
  • Referral
  • Career
  • MPIG
    • About Us
    • Contact Us
  • Get Professional Advice
  • PJ八打灵2021全新地产项目分析手册