Commercial Retail Property

[snowbird]

"Message #1143
Posted by: Snowbird
03-10-2016

The Budget 2017 will announced on 21 Oct.
Petronas is now cashless, needs to cut staff, cut opex and capex to stay relevant and even have to take a bank loan for new development.
So, they may not be able to contribute RM16 billions in dividends which had already been reduced from RM26 billions.
It is extremely ironic and contradicting that Petronas on one hand have to cut opex and expex by billions and yet have to contribute billions and now seek billions in bank loans.

So, where the money for Budget will come from?
While property tax had just been revised and Finance Minister II confirmed no increase in GST, some predicted higher tax for cigs, liquor, petrol, road tax, stamp duty.............which one will affect you guys?"

Thanks for pointing out, my error.
Correction on typo, it should read : Petronas is now cashless very soon, needs to cut..............to stay relevant
But facts remain : cut staff, cut operation cost, cut capital expenditure, needed to negotiate down the dividend revenue to Federal from RM26 billions to RM16 billions, take bank loans, etc. by a once extremely cash rich company in Malaysia.
The essence of my post is the same.

 

[sgtsk]

Why all the bickering? I believe in always worst case scenarios and that is what snowbird is doing, why all the sarcasm, I rather he be wrong than you guys be right, spend some time to think about it.

It is not a bickering but a debate here. What are you suggesting?

 

[xebay11]

It is not a bickering but a debate here. What are you suggesting?

Discuss about commercial property.

 

[snowbird]

This is how property investors in Malaysia work.

Malaysian Chinese have no assistance from Government, no preferential treatment and left to die or survive on their own. It is like out in the sea, they will grab anything that floats including planks, rubbish, turtle back or riding on the fins of sharks to move along as long as they survived and reach the land. No matter how tough and dangerous it is, the priority is to survive to fight another day. Even if it is 0.1% chances. Unfortunately not all make it to the shore.

The other Malaysian races will screamed and say don't worry, the marine police will come and throw us the life lines. And when they drown, they would complain, it is that other race who took away our opportunity to float including turtles. And they still be waiting and waiting. And the boats will come with goodies everytime but they remain forever in water and no incentives to swim to the shore.

Fragmented society but sadly true.

What you said are true facts and its exactly how the social fabric is woven in MY.

Yes, fortunately or unfortunately, usually most of the commercial retail properties are owned by the Chinese.
All that said but how relevant is it to the question here - how is the commercial retail property doing in JB?

 

[xebay11]

Yes, fortunately or unfortunately, usually most of the commercial retail properties are owned by the Chinese.
All that said but how relevant is it to the question here - how is the commercial retail property doing in JB?

Well located ones in upscale residential areas with good access are doing well.

 

[snowbird]

Well located ones in upscale residential areas with good access are doing well.

Name some areas please.
I mentioned Sutera Utama and Bukit Indah, aren't they within upscale residential areas with good roads connectivity?
But shoplots there had been left vacant for about 2 years now.

 

[sgtsk]

Discuss about commercial property.

I am sure your suggestion would be given due consideration

 

[xebay11]

Name some areas please.
I mentioned Sutera Utama and Bukit Indah, aren't they within upscale residential areas with good roads connectivity?
But shoplots there had been left vacant for about 2 years now.

Taman Molek area, Mount Austin, but of course the later releases seem to be vacant.

 

[snowbird]

Usually, when you come across an empty shoplot seeking sales or rental, you'll find 10, 20 banners and posters and stickers hanging or pasted all over the unit like this one.
So, who is the owner or main broker or co-broker?
Can any property agent stick their contact numbers all over the place?
Is their any control on such practice?

 

[jbrts]

I think one reason is residential buyers are more leveraged. For commercial, banks don't give as high loan.

I used to receive lists of auction properties from banks. Oddly many of the properties are residential but very seldom commercial.
I too see a lot of sold yet unoccupied shoplots but seemed that it is ok to leave them vacant. This is how Malaysia work. Buyers of commercial properties are mostly well preprepared to outlast the vacant periods. They are rich otherwise they won't touch commercial properties. They do not buy on marginal financing.

Another take on commercial properties especially on shopping complex. There are just too many of them but very often especially those bigger ones, the retail lots are not sold but rented out. The owners of the complex prefer it that way so that they can control the management, renovation or make any changes in concepts. Tenant mix is also well managed. One thing for sure, they won't close shop. Somehow all these shops will survive.

 

[snowbird]

Was shopping at the popular Sutera Mall last weekend and wanted to visit the Killiney Kopitiam, which is located right next to the main entrance but was shocked to find it vacated and shuttered.
Think it was only about 3 years old, sigh!
Another retail casualty.

 

[FHBH12]

Several mega-malls are opening in 2017 and 2018 in JB. Coupled with e-retail and inflation, expect more retail casualties ahead.

 

[RedsYNWA]

Was shopping at the popular Sutera Mall last weekend and wanted to visit the Killiney Kopitiam, which is located right next to the main entrance but was shocked to find it vacated and shuttered.
Think it was only about 3 years old, sigh!
Another retail casualty.

Great location. Dont mind taking over the unit!

 

[potter]

Noticed nowadays many SYT cheong to JB during weekdays via bus. areas they roam around is similar to 2.4M dollar man (typical; no surprise one). :p
they find it very happening in JB, especially they liked to go to their kopitam...oops.. is Bistro.
they told me what they hear and things they see, is diff story. but I tiam tiam and i give them some tips to move further north..

The moral of the story....guess.:p

 

[winners]

Was shopping at the popular Sutera Mall last weekend and wanted to visit the Killiney Kopitiam, which is located right next to the main entrance but was shocked to find it vacated and shuttered.
Think it was only about 3 years old, sigh!
Another retail casualty.

I have been told that when the nearby Kemayan City Mall will be ready, Sutera Mall will take a backseat. Kemayan City Mall was abandoned for several years already, but is presently being revived again.

 

[wuqi256]

I have been told that when the nearby Kemayan City Mall will be ready, Sutera Mall will take a backseat. Kemayan City Mall was abandoned for several years already, but is presently being revived again.

Yes it is, under the new name of Paradigm Mall. Hope that it will take off this time.

 

[snowbird]

Yes it is, under the new name of Paradigm Mall. Hope that it will take off this time.

Hopefully, but also hopefully not at other shopping malls' expenses.

 

[RedsYNWA]

Was shopping at the popular Sutera Mall last weekend and wanted to visit the Killiney Kopitiam, which is located right next to the main entrance but was shocked to find it vacated and shuttered.
Think it was only about 3 years old, sigh!
Another retail casualty.

Killiney unit has already been taken over by another operator. Hot location. Too slow, haiz.

 

[snowbird]

Killiney unit has already been taken over by another operator. Hot location. Too slow, haiz.

Alamak, so slow how can!
Anyway the shop replacing Killiney is another eatery, a local one 雪山飞糊, as the name suggest, selling ice shaving snack. Tried their food at another branch, nothing great and there is already another 2 more shops just stone throw away selling similar stuff. Hopefully they'll last longer than one lease term cos, another famous cafe further down had just closed.
But again, selling something different and unique may have it's challenge.
A new shop just opened there selling Hokkaido Cheese tart. But it's just too expensive for a regular Johorean that, unlike their Tokyo branch which I've been, is partially having long queues for their hot freshly baked delicious tarts. The local branch has no queue at all with their cabinet full of cold unsold tarts.

 

[snowbird]

Double post cancellation