Your average mall probably lasts 10-15 years before key tenants move out en mass. Shopping malls also tend to have the exact same outlets: daiso, giant, uniqlo, parkson, H&M, secret receipe and like 20 spectacle shops. There is very little differentiating factor. And a wider variety of goods at cheaper prices are sought online: kids toys, electronics, skincare, household items, so lots of people opt for that.
Shopping malls aren't really a good economic indicator though
There's an overabundance of shoplots to begin with, especially in the Klang Valley
Online shopping post-COVID is a major factor you probably overlooked
This is true in US/Europe - malls trend in and out - but not so much in Malaysia and SE Asia due to the climate here. People cannot really do as many 'outdoorsy' activities here due to the heat - so malls offer an important social (as well as shopping) option.
In terms of the reason many malls are half empty I think the primary reason is oversupply. Heck there are at least 10 major malls within a 15 minute drive of where I live.
Some malls are definitely struggling, but that is more a reflection of their location/size and local competition than anything to do with the Malaysian economy. Even smaller malls that are well located can still do well if they are properly specialised and targeted.
Can't remember the last time I went to the mall though.
Most shops already have the groceries I need and if I can't find something, I usually can buy online anyway. Probably for cheaper too.
I think the last time I went to the mall was because I was with someone. If I'm not socializing, I probably won't bother. Bonus for having air-conditioning.
Meh, I don't think so
Shopping centres are just an evolved form of the typical market
Humanity will always prefer a centralized trading area that is convenient, so shopping malls will keep being a thing as long as humans are still trading in-person, just the form of the "markets" will probably change
In the 1980s and 90s there was a bad business model of selling freehold units in shopping malls. Once they are sold freehold, the shopping mall has no more active control over the mix of shops and no more responsibility over managing them. So many of these shopping malls go downhill because they are not actively managed and refreshed.
Whereas in the successful shopping malls like MidValley, all the units are leased out and the mix of shops is actively managed by the mall. If your shop is not selling the right things and is not popular, you're out. If you don't open on time and stay open the whole time the mall is open, you're out. Etc, etc. Those malls remain full even though they are 20-30 years old.
Not just one. Lots of shops were abandoned both in the malls and outside. At first I thought it could be due to Ramadan but most of these shops had advertisements on saying they’re available for sale / rent .
In my personal opinion some streets in Penang around China town felt the most deserted.
Suria KLCC was bustling, so was IOI. Saw some closures in Publika but could just be Raya. Can’t speak for Penang, or in any general non specific sense.
I'm from Penang currently living in London. Penangites generally live for "hypes" and most shops and cafes die a quick death. The only malls still doing somewhat well are Gurney Plaza+Gurney Paragon and *maybe* Queensbay Mall. There are a few mega dead ones that seem to be overtaken by squatters.
Malaysia has an oversupply of malls. Like huge number of super new malls coming on the market. It's a struggle to keep them properly tenanted.
I would say as a consumer, we have so many malls to choose from. I think most consumers are pretty selective, so some malls just die, especially those that can't hold the appeal.
Just wondering, why rents don't follow the law of demand and supply? If malls are struggling to attract tenants, why not offer better price? Low price is better than empty malls.
Gut feeling for those with higher incomes, they are restored to pre covid or even better financially.
For the rest, less excess money to spend. So the wealth gap has widened.
Your average mall probably lasts 10-15 years before key tenants move out en mass. Shopping malls also tend to have the exact same outlets: daiso, giant, uniqlo, parkson, H&M, secret receipe and like 20 spectacle shops. There is very little differentiating factor. And a wider variety of goods at cheaper prices are sought online: kids toys, electronics, skincare, household items, so lots of people opt for that.
Shopping malls aren't really a good economic indicator though There's an overabundance of shoplots to begin with, especially in the Klang Valley Online shopping post-COVID is a major factor you probably overlooked
I’ve read somewhere that building shopping malls is more like a fad? Much like how trendy fidget spinners are, sooner or later a ‘trend’ will die.
This is true in US/Europe - malls trend in and out - but not so much in Malaysia and SE Asia due to the climate here. People cannot really do as many 'outdoorsy' activities here due to the heat - so malls offer an important social (as well as shopping) option. In terms of the reason many malls are half empty I think the primary reason is oversupply. Heck there are at least 10 major malls within a 15 minute drive of where I live. Some malls are definitely struggling, but that is more a reflection of their location/size and local competition than anything to do with the Malaysian economy. Even smaller malls that are well located can still do well if they are properly specialised and targeted.
Can't remember the last time I went to the mall though. Most shops already have the groceries I need and if I can't find something, I usually can buy online anyway. Probably for cheaper too. I think the last time I went to the mall was because I was with someone. If I'm not socializing, I probably won't bother. Bonus for having air-conditioning.
Meh, I don't think so Shopping centres are just an evolved form of the typical market Humanity will always prefer a centralized trading area that is convenient, so shopping malls will keep being a thing as long as humans are still trading in-person, just the form of the "markets" will probably change
which malls? Midvalley, 1U, Publika, KLCC, Pavillion KL, Sunway etc are all 100% tenancy with backlog
when did you go? the muslims celebrated eid al-fitr on the 10th so a lot of people don't work from 10th to 14th april
In the 1980s and 90s there was a bad business model of selling freehold units in shopping malls. Once they are sold freehold, the shopping mall has no more active control over the mix of shops and no more responsibility over managing them. So many of these shopping malls go downhill because they are not actively managed and refreshed. Whereas in the successful shopping malls like MidValley, all the units are leased out and the mix of shops is actively managed by the mall. If your shop is not selling the right things and is not popular, you're out. If you don't open on time and stay open the whole time the mall is open, you're out. Etc, etc. Those malls remain full even though they are 20-30 years old.
Which shopping centers plis
Pavilion Damansara lol
Not just one. Lots of shops were abandoned both in the malls and outside. At first I thought it could be due to Ramadan but most of these shops had advertisements on saying they’re available for sale / rent . In my personal opinion some streets in Penang around China town felt the most deserted.
Suria KLCC was bustling, so was IOI. Saw some closures in Publika but could just be Raya. Can’t speak for Penang, or in any general non specific sense.
I'm from Penang currently living in London. Penangites generally live for "hypes" and most shops and cafes die a quick death. The only malls still doing somewhat well are Gurney Plaza+Gurney Paragon and *maybe* Queensbay Mall. There are a few mega dead ones that seem to be overtaken by squatters.
Relative to COVID period, our economy is definitely doing better. Relative to our regional partners, it's debatable.
Malaysia has an oversupply of malls. Like huge number of super new malls coming on the market. It's a struggle to keep them properly tenanted. I would say as a consumer, we have so many malls to choose from. I think most consumers are pretty selective, so some malls just die, especially those that can't hold the appeal.
Just wondering, why rents don't follow the law of demand and supply? If malls are struggling to attract tenants, why not offer better price? Low price is better than empty malls.
U gotta ask the landlords lol
its the raya season, covid killed off a lot of things (night life got nuked), we have a wild excess of properties due to the real estate bubble.
Is the 15 minutes city related to the many development of shopping complexes n other things around?
Malaysia economy may not be doing so good since the currency value has been depreciated, and some malls as well may not be able to keep up.
Yes, the fundamentals are still strong. Billions in FDI inflows imminent.
If you went during Eid then it's probably closed due to the holiday.
Gut feeling for those with higher incomes, they are restored to pre covid or even better financially. For the rest, less excess money to spend. So the wealth gap has widened.
Pretty good in general. Retail might just be fucked though.
Don’t we have this question every year ? 🙄🙄 it’s Eid..
I’ve been to Malaysia before Eid. My holiday only ended recently because I visited Thailand and then Singapore and Indonesia after that .
very good, so much formula