PETALING JAYA: With a recorded 3% year-on-year (YoY) growth in the Greater Kuala Lumpur, an incoming supply of 6mil sq ft is scheduled for completion by the end of this year.
According to the Savills World Research Asian Cities report, the amount of retail supply available in Greater Kuala Lumpur has reached the 62mil sq ft by the end of 2017.
The report stated that this situation meant that the retail industry within the region will be facing a fierce competition due to the influx of retail space. Moreover, the industry players will have to adapt to the trend of e-commerce or face the risk of being left behind.
Here are five key findings of the Savills 1H 2018 report:
- Seven new malls that were completed as of Jan 2018: KL Gateway (300,000 sq ft), Ikano’s MyTOWN Shopping Centre (1.1 million sq ft), CapitaLand’s Melawati Mall (620,000 sq ft), Amerin Mall (155,000 sq ft), phase two of Mitsui Outlet Park KLIA (97,000 sq ft), M Square Shopping Centre (380,000 sq ft) in Puchong and Evo Bangi (245,000 sq ft).
- A decline of 1.5% y-o-y for retail occupancy rate in KL with an average of 87.5% at the end of 2017.
- Suria KLCC and Pavillion KL are setting the benchmark for the premium rental space in KL with RM220 per sq ft per month and RM110 per sq ft per month respectively.
- In 2017, Malaysia’s e-commerce market recorded a penetration rate of 2.5%. The forecasted stated that it would reach 4%-5% in 2018.
- Market outlook for 1H of 2018: The retail market of the Greater Kuala Lumpur will continue to face increased competition due to the influx of retail spaces. The ongoing digital disruption in the retail industry means that the industry player must adapt to the swift adjustment in the current environment.
To download the report, click on this link: Savills Kuala Lumpur retail 1H 2018