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KUALA LUMPUR, Nov. 1 – Malaysia's 500 or so malls could balloon to 700 by the end of next year.
Though the public may be wondering why developers are still developing, Sunway Malls & Theme Parks chief executive Chan Hoi Choy explained that it is because of a well-conceived shopping center could be lucrative in the long run.
<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "" Successful malls with net lettable areas of one million sq ft can yield an average of RM100 million net property income annually, "he told Malay Mail when contacted. "data-reactid =" 24 ">" Successful malls with net lettable areas of one million sq ft can yield an average of RM100 million net property income annually, "he told Malay Mail when contacted.
He also said that they were more resilient to fluctuations in the economy, and that they were growing.
Despite the potential for malls, Chan said that it was a surplus of existing shopping centers.
Data from the National Property Information Center shows that total retail space grew from 105.4 million sq ft to 167.1 million sq ft in just 10 years since 2008.
These notes have been underscored in the United States.
Asked if the land price is a reason why developers keep building malls over other classes of property, he said it was not the sole factor.
"Generally, it can easily cost up to RM500 million to build at half million sq ft mall. Factoring in this price and this figure can go up substantially, "he explained.
Other considerations include urbanization, affluence levels, catchment market maturity, retail gaps, competitive landscape and integrated development mix strategy, among others.
Chan also pointed out that the current batch of malls are part of a mixed development rather than standalone.
Asked if there are other innovative options for developers to consider the right side of the road.
Zerin Properties head of research and consultancy Roja Rani Applaidu said malls continues to be attractive to developers.
"Nevertheless, the development sites, can also be developed in hospitals, spas or education (international schools and colleges).
"This is due to the growth in population and medical care, especially among the higher income groups and expat communities," she said.
Malaysia Retail Chain Association chairman Datuk Seri Garry Chua previously said Malaysia will have 700 shopping malls with a total net lettable area of 170 million sq ft by the end of 2019.
<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Related Articles Firm: With upcoming projects, Klang Valley to have mall, office glut Rehda blames living costs for struggling to buy homes Malaysia to hotspot with buyers from China to RM3m "data-reactid =" 38 ">Related Articles Firm: With upcoming projects, Klang Valley to have mall, office glut Rehda blames living costs for struggle to buy homes Malaysia to hotspot with buyers from China eyeing properties up to RM3m
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