PETALING JAYA (June 12): Greater Kuala Lumpur will receive another 13.5million sq ft of NLA (net lettable area) within the next two years, of which 63.6% of the spaces are expected to be completed in 2021, according to Savills Malaysia Research in its report titled “Asian Cities Reports - Kuala Lumpur Retail 1H 2020”.
The consultancy estimates that NLA in Greater KL will increase to about 70 million sq ft, 78 million sq ft and 79 milllion sq ft by the end of 2020, 2021 and 2022 respectively, as compared to 65million sq ft as at end-2019.
“As the Covid-19 Movement Control Order (MCO) had brought works at projects and construction sites to a standstill, an extension of timing for completion of these new malls is to be expected,” noted Savills in the report referring to the MCO period that took place from March 18 to May 4 to curb the spread of the Covid-19.
Tropicana Gardens Mall in Petaling Jaya opened in March 2020 was the only mall in Greater KL that was completed in 1Q2020. The mall has a NLA of around one million sq ft bringing the total NLA in Greater KL to 66.3million sq ft.
On another note, it pointed out that factors such as rapidly changing in shopping trends, social distancing and uncertain job conditions will impact the performance of retail malls in short to medium term.
“Investment transactions will be limited as seen in the past two years, with investor confidence and activity expected to be muted for the remainder of this year. Nevertheless, opportunistic investors may perceive this period as an attractive opportunity to deploy their capital despite the challenges,” the consultancy said in the report.
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