Former Malaysian Institute of Estate Agents president Chan Ai Cheng.
PETALING JAYA: A couple of recent advertisements by liquidators for the sale of units in some Klang Valley malls have stoked concerns, but industry players say there is no need for panic.
Former Malaysian Institute of Estate Agents president Chan Ai Cheng said there is no cause for concern as these are individual units within the respective developments.
“For Plaza Mont Kiara, the sale involves six adjoining office suites, while for Jaya One, it includes four retail lots and one office lot,” she said of the advertisements.
Chan said both Plaza Mont Kiara and Jaya One were strata developments, meaning the developers originally sold individual units to separate buyers or end-users.
“In this case, it is likely that the owners of these particular lots – likely companies – have entered receivership. As a result, these properties are being sold as part of the process to wind down their assets,” she told StarBiz.
Malaysia Shopping Malls Association president Phang Sau Lian also said the advertisements did not mean that the malls were under receiverships.
“From the ads, it looks like a few office suites or retail lots are for sale. I guess these are strata properties,” Phang said.
According to the National Property Information Centre earlier this year, the occupancy rates within the local shopping complex retail space had improved by some two percentage points in 2023 compared with a year ago.
Notably, nine new malls or some 220,000sq m of space had been added within the retail space last year.
Chan noted that malls are “changing and reinventing themselves” to meet lifestyle needs as opposed to merely being a place to shop for items.
“It’s about food and beverage, community connection and activities. With the right elements in place, a mall will thrive.
Otherwise it will face challenges and competition. In a way, I would say, the outlook is bright but only for selective malls,” she said.
Still, some industry players offer a little more caution.
Olive Tree Property Consultants chief executive officer Samuel Tan said there are various reasons why distressed sales of malls come about, he said, adding that if they do, each should be treated differently.
“Some malls are abandoned because the developers were unable to complete them due mainly to financial reasons.
“Some operate for a while but later cease operations due to poor management, a poor tenant mix resulting in low foot traffic and unsuitable locations,” he said.
Tan said many of such malls would likely have been sold on a stratified basis.
“As a result, the developers were unable to control the tenant mix.
“A poor tenant mix results in distortion in services or products offered in a mall. Usually such malls cannot survive.”
According to Tan, there are various approaches to address the problem.
“Prevention is the best. Proper market research must be done to ensure viability. Only choice locations with specific target markets should be redeveloped,” Tan said.
He said abandoned malls can either be repurposed, refurbished or redeveloped.
“Currently there is no legislation regulating mall development unlike residential properties.
“It may be good to have one to monitor and regulate commercial developments,” he added.
