2 giant malls to open in Cheras
- EUGENE MAHALINGAM
- Aug 6, 2016
- 3 min read
New mall: An artist impression of Sunway Velocity Mall in Cheras. It is scheduled to open in the second half.
Will it be a catalyst to a mall retail war?
THE repeated, cautionary heeding that the Klang Valley has an oversupply of retail space will seem like nonsense when two huge malls, with a collective net lettable area (NLA) of over 2 million sq ft, will begin operations in Cheras by the end of this year.
If that doesn’t raise eyebrows, then what about the fact that the shopping centres, namely MyTOWN Shopping Centre and Sunway Velocity Mall, will be just 800m apart from each other?
Oversupply or not, one can’t help but admit that’s a lot of retail space coming in within a relatively small radius!
The situation can be likened to two rival gangs battling for territory. But is Cheras big enough for these two behemoths?
Is it viable?
One industry observer who requested anonymity raises concerns that the proximity of the two malls will make it very challenging to conduct business.
“It’s also quite near the Kuala Lumpur city centre and a short distance from other malls such as Suria KLCC, Berjaya Times Square and Pavilion.
“It will be challenging for the market and business. They will both need to fight hard,” says the observer.
Shopping mall: An artist’s impression of the MyTOWN Shopping Centre in Cheras.
Property consultants Knight Frank, meanwhile, believe that despite the growing supply of retail space, there is equally growing demand for shopping centres.
“Shopping centre properties will remain viable,” Knight Frank associate director Rebecca Phan says during a presentation at the Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia (PEPS).
She says this is because shopping malls serve an economic and social need, and can remain viable by experimenting with new formats, designs and technologies.
“They are complementary to non-store shopping (such as online shopping) and are able to satisfy a wide range of consumer needs and wants, from conveniences to services to experience.
“Malls are also a leisure culture for Malaysians,” she says.
Apart from the two upcoming juggernauts, Cheras already has the Cheras Leisure Mall and Aeon Maluri shopping centre. The Tun Razak Exchange is also on the horizon.
What the players say
The development of MyTOWN Shopping Centre is being undertaken by Boustead Ikano Sdn Bhd, while Sunway Velocity Mall is being helmed by the Sunway Group.
Boustead Ikano general manager Jo Hogsander admits that he was overwhelmed by the number of malls here when he first came to Malaysia.
“When I came to Malaysia, I thought there were many malls. But I know now that there is demand for it. In a year from now, you’ll always need a better car and the building we’re constructing now, we are the next generation.
“In Malaysia, there is still a need for good, convenient, clean, safe shopping centres.”
A unique feature of MyTOWN Shopping Centre is that it will be structurally linked to IKEA Cheras, the largest outlet mall in the country.
Sunway Shopping Malls & Theme Parks chief executive officer H.C. Chan says he sees the presence of IKEA and MyTown as a creation of another shopping corridor in KL, fashioned along what we have seen in Mutiara Damansara with The Curve, IKEA, IPC.
“Reception wise, we expect Sunway Velocity to do well due to the underserved Cheras market, despite the largely affluent urbane market
Sources: The Star