With over a hundred malls currently operating in the city-state and several more expected to rise in the near term, is Singapore over-malled?

By Nikki De Guzman

According to the latest data from the government, Singapore currently has over one hundred shopping malls spread across the island. Just along Orchard Roadthe countrys world-famous shopping beltare at least 40 retail malls, with many standing side-by-side along the 2.2 kilometre shopping boulevard.

For a country known as one of the hottest shopping destinations in Asia, the number of malls currently operating in the Republic might be an indicator of how the retail property market has performed over the years. However, as always, there is a flip side to everything, a common observation among locals and tourists alike is that there are a lot, if not too many malls in Singapore already.

In fact, RHB Research reported in September 2015 that the Republic has 1.08 sqm of retail space per capita. Thats one mall for every 53,000 people.

It also stated that the city-state has the highest level of retail space per capita among ASEAN countries significantly above Bangkok which has 0.8 sqm per capita, and nearby Kuala Lumpur with 0.71 sqm per capita.

But what does this mean for the local retail market? What are the implications to mall operators, tenants and consumers?

Here, there, everywhere

While almost half of the countrys retail supply can be found in the downtown Orchard area, a number of malls have also started sprouting up outside the shopping enclave in recent years.

As reported previously in Issue 91 of PropertyGuru News & Views, mall decentralisation in Singapore has started to pick up, and the market is seeing more retail malls dominating some areas.

Jurong East, for example, has changed dramatically in recent times. Just in the last five years, Jurong East saw the opening of four shopping mallsJCube (2012), Jem (2013), Westgate (2013) and BIGBOX (2014)that feature specifications that are typically only seen in those located in Orchard Road.

It can be observed that these malls are situated quite close to, if not side-by-side each other, and just like those in Orchard, allow seamless connectivity to other malls around the area. Specifically, JCube, near Jurong East MRT station, is connected to it via a pedestrian crossing. Just across the station is the 7-storey mall Westgate, which provides a covered linkJ-Walkto Lend Leases mixed-use development, Jem.

From Jem, consumers can access Singapores warehouse shopping mall, BIGBOX, via a link bridge. Also in Jurong is the outlet mall IMM Building, which provides patrons shuttle services to and from Westgate and JCube, and via a link bridge to the train station.

It is noted that these mallsJCube, Westgate and IMM Buildingare owned and operated by CapitaLand Malls.

Responding to an enquiry by PropertyGuru, CapitaLand discussed how they tackle the challenges of remaining relevant to consumers and how they keep their malls competitive among other malls.

We position our malls differently to cater to different shopper segments, even though they may be located near one another, shared Teresa Teow, Head of Retail Management for Singapore at CapitaLand Mall Asia.

To illustrate, the three CapitaLand malls in Jurong Gateway are positioned differently to complement one another. Westgate is the premier lifestyle and family mall, offering the best of downtown shopping with brands that in the past were found only in malls along Orchard Road.

JCube is the leisure and entertainment hub IMM Building nearby is Singapores largest outlet mall which has 85 outlet stores, Teow said, adding that these three malls offer the equivalent of a three-in-one mega mall forming a retail destination where there is something to offer every shopper.

Experts said having many malls in one location is not entirely a bad thing. The more diversity, the more vibrant the shopping scene, said Sulian Tan-Wijaya, executive director of retail and lifestyle at Savills Singapore.

The upside (of having many malls) is the ability to create a critical mass and large enough cluster of shopping and lifestyle experiences for a shopping destination. This is how Orchard Road helped position Singapore as a shopping capital, where global retail giants coexist with independent, eclectic small retailers to complete the shopping experience, she added.

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