Retail Glut Not a Setback, People's Confidence Needed
Shopping malls and commercial centres in Sabah's capital are finding it tougher to gain full occupancy due to rising prices and rigid financing conditions.
However, in a recent interview snippet with Director of Azmi & Co. Sabah, CK Wong, he said that talks of an oversupply of mall space in Kota Kinabalu is not accurate and studies need to be more comprehensive and holistic in their approach.
Below are some of the public comments on the glut in the retail market.
It is not oversupplied by number. It is only low in demand and not well managed with the average vacant rate of 20% according to WTW research 2016 and it has not included ITCC, Jesselton Mall, Grand Merdeka Mall and upcoming Inanam Mall & PACIFICITY. Local purchasing power which the GDP per capita in Sabah is 21k, KL is 92k and Selangor is 42k.
Angneyou Anthony Kisung
Good if that's it. I hope that no one is influenced into buying the existing lots. See if they survive or go bankrupt. Let them find tenants as opposed to asking buyers to look for renters. This comment has been translated from Bahasa Melayu
Think positive. It's good but doesn't forget to face the reality. Teach the public to face the fact. Tourists who come to visit a foreign place will not buy the same products which are also available in their countries. Open a place where tourists can buy rare items, watch cultural shows n local artwork. We need to show our culture, offer nice cheap street food and highlight our natural beauty. Mat Salleh (westerners) won't visit malls lah.
Malls are dying all over the world as the new generation shop online. Eventually, these malls will turn into storehouses.
Robert Tan Sri Lai
Speaking but not making sense. Just go and have a peek at Central Shopping Complex. How many lots are occupied, likewise Oceanus and the latest offering Grand Merdeka at Manggatal. If there is no oversupply as you say, you must know something most of us are unaware of!
Just go and see it yourself. Look how many empty lots and lack of people in many various shopping complexes. Plus, how many people out of the half million afford to spend at expensive shops?
Based on a recent research report dated 2nd â€“ 8th October from Knight Frank, it stated that e-commerce will not replace malls in this lifetime because both models need each other to survive.
The future of shopping experience trend is a mix of both, but not either one.
CH William, Talhar & Wong's Director (Sabah) Cornelius Koh said that while the economic sentiments may be dampened right now, it will definitely recover in the future.
"If developers were to wait for the market to be up and running to start building, they will lag behind competitorsâ€, he added.
There are, indeed, a lot of shopping malls around Kota Kinabalu but these pockets of development will take time to boom, given the current subdued market. There is no doubt that in the years to come, with the people's confidence in mind, new and upcoming shopping malls will be successful.