MALAYSIA’S retail sales, which expanded 1.7 per cent last year, continue to retreat amid rising cost of living, recording a 1.2 per cent contraction in the first quarter of this year.
Consumers remained cautious in their spending amid rising cost of living as pointed out by Knight Frank Malaysia in their latest research report: “Real Estate Highlights for 1st Half of 2017.”
The report stated that the Klang Valley retail supply continued to expand rapidly despite growing challenges in the industry.
“The economic recovery with higher gross domestic product posting in the first quarter of this year and the recent strengthening of the local currency may lift consumer sentiment and improve retail sales going forward,” it said.
Malton Bhd, which is developing the RM4 billion Bukit Jalil City project, is quite bullish on the Pavilion Bukit Jalil City mall, which will be managed by Pavilion Kuala Lumpur.
According to Pavilion Kuala Lumpur retail chief executive officer Datuk Joyce Yap, the mall is expected to achieve retail sales turnover of RM1.7 billion in the first 12 months of operation.
Pavilion Kuala Lumpur is expecting 70 to 80 per cent of occupancy when it starts operations in the fourth quarter of 2020.
“We see huge interest with over 1,000 registrations from prospective tenants,” she said recently after the launch of the second tower of The Park 2 serviced apartments at the Bukit Jalil City.
Yap said with a net lettable area of 1.8 million sq ft, Pavilion Bukit Jalil is poised to be a regional mall in term of brands mix, flagship stores and concept.
Bukit Jalil City is a collaboration between Malton and Pavilion Kuala Lumpur.
Launched in 2015, the 20.1ha development will be fully completed in 2021.
Besides the mall, Bukit Jalil City consists of the Signature Shop Offices (112 units), The Park Sky Residence (1,098 serviced apartment units), Park Point Shop Office and The Park 2 (709 units of serviced apartments).
The Park 2, featuring two towers, has an estimated gross development value of RM720 million. There are 385 units in Tower 1 and 324 units in Tower 2.
Tower 1 was launched in March and has recorded a take-up of more than 90 per cent while Tower 2 is about 70 per cent sold.