Statistical data tend to lag behind what is happening on the street. Could foresee q3/2016 napic numbers won't be wonderful.

Food also in bubble now.

KUALA LUMPUR: Did you know that Perda City Mall in Bukit Mertajam Penang suddenly shut down after just 18 months in business? Apparently, they only gave tenants a day’s notice in writing and no explanation, according to The Edge Malaysia.

In its cover story entitled ‘Crunch Time for Malls’ for the week of Aug 8-Aug 14, it also noted that the massive 2.3 million sq ft net lettable area (NLA) Empire city Mall in Damansara Perdana, Selangor, had announced last year it would delay its opening from end-2015 to next month.

More recently, Sime Darby Property Bhd and CapitaLand Malls Asia’s joint venture – the RM670 million Melati Mall in Kuala Lumpur also postponed its opening from the year’s end to 2Q2017. The delay was due to “design planning and current headwinds” in the economy.

The weekly’s writer Chua Sue-Ann wrote that the shopping mall business has come under pressure due to a confluence of factors, like oversupply of retail space, lower tourist arrivals, weakness in domestic retail spend, lacklustre consumer sentiment, intense competition for tenants, and changing consumer preferences and behaviour.

Retail consultants say they cannot remember a more challenging time for shopping malls in Malaysia. Like Savills Malaysia managing director Allan Soo. Not even the 1997/98 financial crisis impact dragged on as long as it did now.

“After 1998, things were back up pretty fast,” he told the weekly. Some malls even opened almost immediately after the crisis, including Suria KLCC (opened in May 1998) and Mid Valley Megamall (November 1999). “This time is the toughest. There are more variables, more competition and real oversupply issues. It’s going to be much harder work,” he said.

At the same time, Malaysia’s retail industry hasn’t had it easy of late – it saw a 4.4% year-on-year contraction in sales in 1Q2016, compared with a 4.6% growth a year earlier that was buoyed by pre-goods and services tax buying, according to data from the Retail Group Malaysia.

Meanwhile, data from National Property Information Centre shows Malaysia, as at end-2015, had 148.85 million sq ft of existing retail space, with another 16.2 million sq ft incoming, and a further 11.08 million sq ft being planned. In Klang Valley alone, i.e. Kuala Lumpur, Selangor and Putrajaya, there was 241 shopping centres with 64.1 million sq ft of space, with average occupancy of 80.4%, in the same period, according to Henry Butcher Malaysia Sdn Bhd.

The saturation is mostly Klang valley’s Damansara, including 1 Utama Shopping Centre, Glo Damansara and Atria Shopping Gallery. A few more is opening in the coming months to next year, such as Empire City Mall, the Starling and Damansara City Mall.

http://www.theedgemarkets.com/my/article/n...malaysian-malls

With more kv property vp mean buyers to commence loan repayment, a reduction in disposables income, also mean retail sales is suppressed.

now pasar also slow. Sayur tak laku.

i am not sure about bubble

it may burst over time, but it will surely climb up higher in the future

BBB?

Waiting for next year when things become even worse and owners of landed corner lot want to offload at 20-30% below market value. Just sold off 1 unit bought in 2009, keeping some bullets for next year.

Am 99% sure the correction is only beginning. Next year many abandoned projects, developers pushing like mad these days with roadshows for finished projects still less than half sold. It's a forecast for what's coming next year.

he's telling the truth if you check the statistics

i believe supply and demand based on statistics by MOF valuation & property services department
not perceived or "orchestrated" supply and demand.
prices were going up up up up right before the subprime and wallstreet crash in 2008 too
the thousands and thousands who lost their homes and work followed the up up up camp, so what's ur point?

Wow 26% discount ddd

Finding prop.

Any gooding deal?