Sudden closure for Perda City Mall

Perda City Mall in Bukit Mertajam Penang, Malaysia, shut down so suddenly after just 18 months in business that tenants apparently had only one day’s notice in writing and no explanation.

This follows the announcement last year that the Empire City Mall in Damansara Perdana, Selangor, would delay its opening from the end of the year until next month, reports The Edge Malaysia.

Also delaying its opening is the RM670-million (US$165.5 million) Melati Mall in Kuala Lumpur, a joint venture by Sime Darby Property and CapitaLand Malls Asia. It was to have opened at the end of last year as well, but has postponed this until the second quarter of next year, citing “design planning and current headwinds” in the economy.

The Edge writer Chua Sue-Ann says the shopping mall business has come under pressure because of a confluence of factors such as oversupply of retail space, fewer tourist arrivals, weakness in domestic retail spend, lacklustre consumer sentiment, intense competition for tenants, and changing consumer preferences and behaviour.

According to data from real estate consultancy Henry Butcher Malaysia, average rental rates for Kuala Lumpur malls fell 7.2 per cent last year. Average occupancy fell to 82 per cent from 83.2 per cent in 2014, while Selangor malls saw a decline to 79 per cent from 81.7 per cent.

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