Singapore malls look great as they remain a popular destination.
Technology
Technology can be used by retailers to lure customers to malls instead of online shopping.
Tracking spending and shopper activity can improve tenant selection. Analysing the data of spending habits for different visitors helps to create targeted marketing with superior results.
The time saved by customers who shop online and visit the mall for their purchases allows them to enjoy other activities.
Technology is also used to reduce the running costs of shopping malls. This is vital in an era of high inflation. Mall owners reap indirect benefits when retailers use the technology to boost productivity and alleviate manpower shortages.
Yet, retailers will remain vigilant and aware of the fickle nature of consumers, and how online shopping platforms are competing fiercely to gain a greater share of wallets.
Locals will also need to tighten the belts, given the rise in living costs and the increased goods and service tax.
Due to the aging population, owners should make sure that malls are accessible to older shoppers.
Malls took a big hit from the Covid-19 outbreak and the subsequent movement restrictions.
Debate raged about how the pandemic might change consumer behaviour, with people opting to avoid crowded places, eat out less and do more online. There are many malls here that seem to be doing very well.
Cuscaden Peak Investments stated that The Woodleigh Mall is fully occupied and will officially open in November 2023. The Woodleigh Mall caters to young families, millennials and their children.
One Holland Village is a pet-friendly outdoor mall that was opened recently by a Far East Organization joint venture.
CapitaLand Integrated Commercial Trust, C38U 0%, had a rental reversion of 8,3 per cent in Singapore’s suburban malls.
CICT’s manager reported improvements in tenant sales for most trade categories by 2023.
Shoes and bags led the improvement. The trust’s valuation of its retail portfolio increased by 2.9% from the year previous.
Suntec City has posted a rent return of 21.8 percent for 2023. This is due to an increase in shopper traffic by 8.1% and tenant revenue per square feet increasing year on year, respectively, by 4.1% and 8.1%.
Paragon Reit, SK6U: 0% occupancy rate reported at the end of 2020 for Paragon Orchard Road Mall and The Clementi Mall.
Frasers Centrepoint Trust (J69U) 0% Suburban malls including Century Square, Causeway Point, Nex, Waterway Point, and White Sands had reached or were nearing full occupancy by the end of 2019.
Nike opened in Orchard Road its largest store in Asia, outside of China, earlier this. The store occupies 3 storeys with around 28,000-square-foot.
Hotel Properties Limited’s proposed mixed-use development in Orchard Road includes the Forum The Shopping Mall, HPL House, and the voco Orchard Singapore Hotel. H15.0% includes the offices, hotel room, homes, as well as approximately 288,583sq ft retail space.
Strong demand drivers
Singapore malls have strong demand drivers. Singapore’s weather forces people to seek refuge in air-conditioned stores on humid and hot days. People will hide in malls if it is raining, particularly those that have covered walkways connecting them to MRTs, bus stations, offices or homes.
A good public transit system and the generally compact nature in which homes are built here encourage people to visit malls with family or friends.
Malls also attract people for their convenience, as well as for other reasons such as dining, shopping, enrichment, wellness, and working out.
In addition to increasing income of middle-income and lower-wage employees, efforts made to upgrade skills and improve social safety nets could also help increase mall spending. Low-income groups, in particular, may have a greater marginal propensity to buy than high income earners.
Budget 2024 announced a package of incentives that includes Community Development Council Vouchers for every Singaporean household worth S$600 plus other items to boost retail expenditure.
A combination of increased international tourism and large investments to enhance Singapore’s offerings will help the mall owners.
Visitors coming to Singapore for sporting events, concerts, sports conventions and sightseeing will almost certainly patronise the food and drink outlets and retail stores in malls.
Singapore Tourism Board reports that between 15 million and 16million international visitors are expected in 2024. These visitors will bring in S$26 billion up to S$27.5billion. In 2023 the tourist arrivals were at 13.6million.
STB believes that the recovery in tourism will be driven primarily by increased flight connectivity and capacity globally, as well a reciprocal 30-days visa exemption between Singaporean and China.
STB statistics show international visitor arrivals grew 15.9% over the previous January to 1.4million – the highest post Covid numbers yet.
Planning and ownership are two key factors that contribute to the positive image of malls here. The island-wide planning regulations are very strict. They dictate what buildings can be built. The key malls in certain areas may not have direct competition and retail space isn’t oversupplied.
Strong mall owners will invest heavily in marketing, branding and asset management.
They also make sure their malls are well-maintained. These landlords actively manage their tenant mix to cater for customer needs. At busy malls, the tenant mixture is constantly evolving as popular brands and products take more space.
