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Tag: real estate

  • Analysts expect property market to recover early next year

    Analysts expect property market to recover early next year

    The property market has overcome its most difficult period and will recover from early 2024, analysts concur.

    Speaking at the first-ever Autumn Real Estate Forum in Hanoi recently, Can Van Luc, chief economist at state lender BIDV and a member of the National Financial and Monetary Policy Advisory Council, said: “There are more opportunities [now] for the real estate market than challenges because it has overcome the most difficult period.”

    The central bank has reduced policy interest rates four times this year, leading to lower lending interest rates, and policies have been launched to support businesses and individuals such as debt restructuring and preferential credit for social housing, he said.

    He said that tax breaks have also helped companies overcome cash flow and liquidity difficulties. Tax exemptions, reductions and extensions this year are estimated to be worth VND200 trillion (nearly US$8.5 billion), he said. “These are unprecedented policies for businesses, including those in the real estate sector.”

    A lot of corporate bonds will fall due in March 2024, but the situation is under control, seems to be the consensus among analysts.

    Meanwhile, inflation and interest rates tend to gradually decrease, creating conditions for the central bank to loosen monetary policy.

    By August inflation was at 4.6% and the overnight interest rate had decreased to nearly the level of the beginning of 2021.

    The property sector also ranked second in attracting FDI with its US$2 billion accounting for nearly 10% of total inflows.

    Nguyen Van Dinh, president of the Vietnam Association of Realtors, said the market has improved.

    A number of new projects put properties on sale in the second quarter and there were 3,700 successful transactions, while there had almost been no new supply in the first quarter and only around 1,000 transactions, Dinh said.

    Between July and August there were another 5,000 transactions, 70% in the apartment segment. Supply is gradually increasing again mainly from 300 old projects.

    Many investors have restructured their products, lowering prices to attract buyers.

    Dinh said: “In the beginning of this year many developers and investors stopped launchingproducts because they were afraid no one would buy. But since the third quarter their confidence has returned.”

    Experts said the signs indicate the market would start recovering at the beginning of 2024. Luc forecast the economy to grow at nearly 6% in the third quarter and 7.5% in the fourth quarter, and the property market will perform better from the beginning of next year.

    He believed early 2024 would be a favorable time to make investment decisions as interest rates and land and housing prices are decreasing.

    Economist Dinh Trong Thinh said the market would see clear changes from the end of the first quarter and the beginning of the second quarter of 2024 when there is stronger supply of social housing.

    He said developers and buyers would focus on affordable housing rather than luxury projects like apartments, villas and resorts to ensure cash flow.

    Since the end of 2022 over 400 social housing projects have been under way. One of them, a project to build one million social and workers’ housing units is expected to contribute to the market’s recovery.

    According to the Vietnam Real Estate Research Institute, the market will make a V-shaped recovery starting in the middle of the second quarter of 2024.

    The supply of apartments is expected to soar by 20-25% annually during the recovery period in 2024-26.

    In Hanoi and Ho Chi Minh City, apartment supply during the period will be 70,000-85,000 units a year, equivalent to pre-pandemic levels.

    Experts admitted however that the market would continue to face challenges until 2030 since there is no national strategy for the housing market with a long-term vision.

    They said long-term challenges include overlaps in policies and legal mechanisms, a resource shortage, inflation and high interest rates, and modest quality of planning, infrastructure, market information, and human resources.

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  • HCMC hotel business gloomy as foreign tourists keep away

    HCMC hotel business gloomy as foreign tourists keep away

    Hotels in Ho Chi Minh City are suffering from low occupancy rates due to a sharp drop in international visitor arrivals and domestic tourists’ preference for traveling to beaches.

    In May, amid a wave of hotel closures and conversions into office buildings, the Norfolk Hotel in District 1 with over 100 rooms stopped operating.

    In mid-June many hotels in tourist areas such as Bui Vien Street, Bui Thi Xuan Street and Le Thanh Ton – Ly Tu Trong in District 1 temporarily closed due to lack of customers.

    The latest accommodation market report by real estate consultancy Savills Vietnam said hotel occupancy rates in the second quarter were down 8 percentage points quarter-on-quarter.

    All segments suffered as foreign visitor arrivals to the city fell by 13% quarter-on-quarter. The rate of overnight guests in the city was only 19%, the lowest in the country.

    Hotels are currently relying on business guests since the city is a transit point between various provinces and cities.

    Troy Griffiths, deputy general director of Savills, said recovery in international tourism has been slower in Vietnam than other countries in the region.

    He pointed out that the number of visitors from China, the second biggest market, was 78% down in the first half from 2019, the year before Covid.

    Trang Minh Ha, chairman of investment firm North Stars Asia, said the third quarter, when it is the rainy season, is the low tourist season in HCMC, and so occupancy and room rates would continue to be low.

    The number of hotels that close permanently or temporarily could rise sharply, he said.

    The economic difficulties post-pandemic, boring and monotonous tourism products and Vietnam’s difficult visa policies have kept tourists away, he said.

    The city needs to strengthen programs on attracting visitors to compete with countries such as Thailand, Singapore and Indonesia, he said.

    “HCMC’s hotel industry is waiting for an optimistic signal from the economy for recovery. However, the market may have to wait until the end of 2024 for a solid positive signal.”

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  • Property developers sell off assets to pay debts

    Property developers sell off assets to pay debts

    Property developers in southern Vietnam are selling off their assets despite losses to pay debts amid a slump in demand.

    A property developer in District 1, which develops projects in southern Ho Chi Minh City and Binh Duong Province, last month sold off one of its projects for VND300 billion ($12.71 million), 57% lower than its valuation.

    The company leader, who asked to remain anonymous, said that in May the landlord warned the company that it might have to move its headquarters if rents were not paid.

    “I had to mortgage my home and car to pay for the company’s rents and some short-term debts. I also had to reduce the office space to cut costs,” he said.

    Another developer in District 3 in the first quarter had to pay a VND300 billion debt and intended to use dozens of apartments as a mortgage, but the apartments were valued at VND200 billion, one-third less than three years ago.

    “Even though the assets were valued less I had to mortgage them to pay debts amid a cash crunch,” he said.

    In the second quarter, many premium apartments at a high-end project in District 1 were sold at a 40-50% discount, a price reduction of VND6-9 billion per unit.

    Nguyen Van Dat, chairman of Phat Dat Real Estate Development, said at a recent meeting that he had to sell off many of the company’s’ and his own assets to help the company pay debts.

    “I sold a VND3-trillion asset for VND2 trillion. I also sold and mortgaged many family assets to help the business through difficulties,” he said.

    Property developer Quoc Cuong Gia Lai is even considering selling its hydropower power plant in the central highlands province of Gia Lai to pay debts this year, even though the plant is making large profits.

    A recent report by the Vietnam Association of Realtors said that mid-2023 was the peak of difficulties for property developers and they had to sell off many assets for losses to pay debts.

    They either have to do this or sit still and eventually will go under due to the lack of revenue, he added.

    Tran Khanh Quang, CEO of property developer Viet An Hoa, said that the issues in the bond market and lack of access to new loans from banks, combined with declining property prices, have left companies struggling to survive.

    In the last two quarters, the situation might improve if loan interest rates are lowered, he added.

  • Higher input costs, speculation drive housing prices up

    Higher input costs, speculation drive housing prices up

    According to experts, the increasing costs of land, materials, labor, legal procedures, and interest rates, as well as speculation, have all been pushing housing prices up for years.

    In recent market reports, the Ministry of Construction has confirmed that housing prices are currently unaffordable for many people.

    Le Huu Nghia, director of construction and real estate firm Le Thanh Company, said housing prices in big cities like Ho Chi Minh City are too high compared to ordinary middle-class incomes.

    Nghia said all high-end housing sells at high prices, while a shortage of social housing and affordable commercial housing has increased the average housing price.

    According to him, of the three reasons, housing development projects’ legality-related sluggishness is a huge cost push-up because of its impact on other costs.

    It takes 5-7 years or even longer for a project to complete legal procedures, so its developer incurs many costs while waiting.

    With loan interest rates of 11-14% a year, the prolonged time period increases 50-70%, or even 100%, in the project’s total capital cost. The final long-term use home buyer will have to pay more because the project’s production costs have also risen.

    The chairman of a firm developing residential real estate projects in HCMC’s Thu Duc City also said hefty input costs are the main reason for high housing prices.

    He added that land clearance compensation costs, which developers have to pay in advance, have also surged in recent years, and it often takes years to complete the site clearance process.

    According to businesspeople and experts, other factors contributing to high housing prices are speculation and price manipulation by some investors.

    Both Le Huu Nghia, director of Le Thanh Company, and Huynh Phuoc Nghia, a senior consultant at advisory firm GIBC, suggested simplifying legal procedures.

    Economic expert Huynh The Du said the State should ensure the consistency of housing policies and the transparency of real estate-related information.

    The government should create channels providing home buyers with enough data and analysis to make informed decisions, while also establishing mechanisms to more effectively screen and allocate capital to the development of different housing segments, he added.

  • Vingroup revenues down 5%

    Vingroup revenues down 5%

    Vingroup, Vietnam’s biggest private conglomerate, made total consolidated net revenues of VND88.191 trillion ($3.56 billion) in the first nine months, posting a year-on-year decline of nearly 5%.

    Vingroup gained after-tax profits of VND1.571 trillion, according to its latest consolidated financial statements.

    By the end of September, the firm’s total assets stood at VND555.571 trillion, up 30% against late last year, mainly due to successful transactions among new real estate projects.

    Vingroup said its property segment will continue to grow in the last quarter and next year, and its vehicle sales will rise in the last quarter. Its other segments, including trade center business, tourism, recreation, healthcare and education are also expected to recover.

    Since the beginning of this year, Vingroup has mobilized $760 million from the international capital market, including $625 million worth of international bonds and $135 million from an anti-climate change financial package from the Asian Development Bank.

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  • Siam Piwat to manage a new mall at Park Silom in Bangkok

    Siam Piwat to manage a new mall at Park Silom in Bangkok

    NYE & RGP Development Co., Ltd., a collaboration between NYE Estate Co., Ltd., and Minor International PCL, inks a strategic deal with Siam Piwat Co., Ltd. for a retail asset management and property management for “Park Silom”, a premium mixed-use project in the heart of Silom under the theme “New Breed of Silom.”  The retail space spans over five storeys of the total 39-storey mixed-used project that recently won prestigious international awards. The retail concept is envisioned to be a ‘one-of-a-kind retail experience,’ that caters to the lifestyles of office occupants along with Thai and international tourists with high purchasing power The collaboration between the three property and retail industry leaders, all with extensive experience in managing world-class and high-profile projects, will establish “Park Silom” as a new landmark in Silom – the prospering economic neighbourhood, by introducing a new lifestyle that responds to the multi-dimensional ways of living.

    Ms Ornruedi Na-Ranong, Chief Executive Officer of NYE Estate Co., Ltd, said “NYE & RGP Development, which is a joint force between NYE Estate and Minor International PCL, has developed Park Silom as a premium mixed-use office building and a retail space covering an area of six rai and 39-storeys right at the centre of Silom, based on a theme “New Breed of Silom.” The project is designed to offer an integrated lifestyle experience for locals and people working and living around Silom. We have signed the MOU with Siam Piwat in collaboration for retail asset management and property management, with the ultimate goal to fulfil the lifestyle of the new generations at  Park Silom and its neighbourhood, and for Silom people to be able to live a balanced life where work, shopping and after-work socializing perfectly integrated in a different and distinctive way.”

    “This collaboration with Siam Piwat, highly recognized as “The Visionary ICON”, will further enhance Park Silom’s credentials among retailers, thanks to Siam Piwat’s in-depth experience in property development which features numerous world-class projects that have earned many international awards and recognition. The proven success will create a new dimension to the intermix of Park Silom’s office building and retail space – to offer new experiences that cater to the multi-faceted work life and lifestyle of the building’s occupants which are mostly leading companies and international organizations, for “Park Silom” to become a new landmark of Silom,” said Ms Ornruedi.

    Dillip Rajakarier, Group CEO of Minor International, added “We are delighted to collaborate with the two prominent property and retail developers to develop an iconic “Park Silom” project.  Minor International has long experience in building and operating hotels, restaurants and mixed-use businesses globally. We are confident that we can employ our expertise in hospitality and retail, as well as key corporate support functions to contribute to this supreme quality business and lifestyle hub in Bangkok’s financial heart”.

    Chollachat Meksupha, Senior Executive Vice President of Business Development and Real Estate of Siam Piwat Co., Ltd., the leading property and retail developer – the owner and operator of prestigious retail destinations including Siam Paragon, Siam Center and Siam Discovery and a joint venture partner of ICONSIAM and Siam Premium Outlets Bangkok said, “Siam Piwat is delighted to develop ‘Park Silom’, set to become a new landmark of the Silom area which will play a very important role in reviving Silom as a prime Central Business District (CBD).  For the past 63 years, Siam Piwat has been ‘The Visionary ICON’ that excels in developing and managing world-class property and retail projects as well as global All of which have been pioneering milestones, new concepts that deliver the ultimate experience and delights for visitors. In this partnership, Siam Piwat will fortify retail asset management and property management for Park Silom, to achieve the fulfilling experience of an integrated urban work life and lifestyle.”

    Our partnership is formed at the right time, as Silom is a prime location and the centre that welcomes numerous leading organizations such as financial institutions, large corporate enterprises and multinational corporations. Hence, the Silom area welcomes many high purchasing power shoppers. At the same time, this business district also features retail brands and spaces to serve the lifestyles of the new generation who seek harmonious work-life balance.  The area also offers shopping and hang-out spots for office workers as well as local and international tourists who have been increasing in numbers following the country’s reopening.

    “We are confident that, Siam Piwat’s successful credentials as a developer of ‘World Class Destinations,’ together with our extensive knowledge, experience and expertise in multi-faceted areas including real estate development, retail business, shopping centres, food and beverages, marketing communications as well as the retail asset management and property management will ensure this collaboration is successful. It will also mark another retail breakthrough by creating a ‘one-of-a-kind retail experience that is unique and outstanding in the Silom area,” concluded  Mr Chollachat.

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  • Chinese Property Worries Trigger Surprise Trust Audit

    Chinese Property Worries Trigger Surprise Trust Audit

    China’s national auditor is making surprise checks in the nation’s $3 trillion trust industry which is also feeling the ripples of the ongoing property crisis.

    China’s National Audit Office has been inspecting the books of at least 20 trust firms in the last month – including the industry’s top five – according to a report citing unnamed sources.

    The firms are being asked to report on risky loans to developers as well as any plans for the disposal of such assets. The audit office is expected to submit its conclusions to policymakers in Beijing who could decide on future reforms for the sector. The inspection is still in progress and no conclusions have been made thus far.

    China’s trust sector is the most unconstrained funding channel in the financial industry with loans and investments across stocks, bonds, commodities, real estate and more. The sector was once a popular source of property funding with related investment products that were viewed as safe bets by wealthy Chinese individuals and institutions.

    The sector holds a combined 20.2 trillion yuan in assets ($3 trillion), as of end-March, according to the China Trustee Association.

    The surprise audit with a focus on real estate-linked risk occurs in the midst of an ongoing property crisis that has been headlined by mortgage boycotts over unfinished housing projects by cash-strapped developers. In addition to the trust audit, authorities have responded by offering grace periods for mortgage payments and the establishment of a fund by the People’s Bank of China to support developers to finish building homes.

    This year, trust firms have defaulted on about 58 billion yuan of property-linked investment products, according to data tracker Use Trust, which are popularly sold to wealthy Chinese.

  • Vinhomes profits slips by 17 percent in Q1

    Vinhomes profits slips by 17 percent in Q1

    Property developer Vinhomes reported a 17-percent decline in profits in the first quarter to VND5.89 trillion (US$256.8 million).

    Net revenues were down 9 percent to VND14.28 trillion, according to its consolidated financial statement.

    Around 62.5 percent of its revenues, or VND8.92 trillion, came from the sale of three housing projects, Ocean Park, Smart City and Grand Park.

    Its selling expenses were down, but administrative expenses rose by over 60 percent.

    The company, a subsidiary of conglomerate Vingroup, eyes revenues of VND75 trillion and profits of VND30 trillion this year, according to a document it circulated among shareholders.

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  • Real estate developers remain largest bond issuers

    Real estate developers remain largest bond issuers

    Real estate companies issued approximately $1 billion worth of bonds, accounting for 62 percent of the total market issuance, in Q1.

    According to leading brokerage firm SSI Securities Corporation, the total volume of corporate bonds issued in Q1 was VND37.4 trillion (over $1.6 billion), down nearly 24 percent year-on-year. Sixty-two percent, or VND23.15 trillion (nearly $1 billion), of this were issued by real estate developers, a year-on-year decrease of 5 percent.

    The proportion of bonds issued by other sectors was much lower: securities companies and non-bank financial institutions accounted for 6.8 percent; energy and mineral enterprises (4.5 percent); commercial banks (3.3 percent); and infrastructure development enterprises (3.1 percent).

    The average maturity of real estate bonds issued in Q1 fell sharply to 2.9 years from 3.9 years in 2019 and 2020. Their average interest rate was 10.41 percent per year, the highest rate in the market. The banking sector had the lowest average interest rate at just 4.67 percent per year.

    Corporate bonds accounted for 9.2 percent of the total at VND3.4 trillion (nearly $147 million), with their collateral comprised entirely of stocks. These included bonds of PDR of Phat Dat Real Estate Development, KDC of packaged food producer Kido Group, KBC of industrial real estate developer Kinh Bac City Development Holding Corporation, APH of plastic producer An Phat Holdings, and DXG of property developer Dat Xanh Group.

    Affected by regulations on investment conditions for privately issued bonds, individual investors only bought VND1.53 trillion worth of corporate bonds on the primary market, just 16 percent of the same period last year.

    The Vietnamese government recently issued a decree that limits companies to no more than two bond issuances a year. The decree followed the Ministry of Finance issuing warnings about the potential risks of investing in bonds and telling retail investors “not to purchase bonds just because of high-interest rates.”

  • Knight Frank Boosts Research Team in APAC

    Knight Frank Boosts Research Team in APAC

    The global property advisor has appointed an industry veteran to oversee its research teams across the region. Knight Frank has appointed Christine Li as head of research, Asia-Pacific, based in Singapore, it said in an announcement on Monday.

    Li brings over 15 years of industry experience delivering research and strategic analysis for both commercial and residential real estate markets. She joins from Cushman & Wakefield, where she spent six years, most recently as head of research, Singapore and Southeast Asia.

    Li will oversee the firm’s forecasts and insights across office, industrial and residential sectors as well as specialist asset classes such as student accommodation, multi-family and data centres, and will provide an Asia-Pacific perspective on Knight Frank’s global reports, the announcement said.

    Christine’s experience working with Singapore’s leading institutional and private investors, alongside her breadth of expertise across Asia and profile in the market make her the ideal candidate to lead Knight Frank’s research in the region, Kevin Coppel, managing director, Knight Frank Asia Pacific, said.

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  • Covid-19 shadows as Hanoi real estate market recovers

    Covid-19 shadows as Hanoi real estate market recovers

    Most real estate classes in Hanoi showed recovery signs in Q4 2020, but Covid-19 uncertainties continue to loom over the market this year.

    The retail category saw total supply in the last quarter increasing 1 percent year-on-year to 1.6 million square meters with the launch of the 36,000-square-meter Vincom Mega Mall Ocean Park in the eastern part of the capital, according to a report released Tuesday by real estate consultancy Savills.

    However, average rents fell 3 percent year-on-year, while occupancy dropped 2 percent, showing that Covid-19 impacts remain on the market.

    “Footfall is slowly recovering but yet to return to pre-pandemic levels with impulse and extravagant spending limited to increase savings,” the report said.

    The office category saw supply rising 6 percent year-on-year and average rent up 3 percent with growth in demand from companies in services, information and communications technology and e-commerce.

    By next year, around 208,000 square meters from 15 projects will enter the office market. But as the Covid-19 pandemic has prompted companies to downsize and reduce operating costs, the downward trend in office space demand is set to continue, the report said.

    The apartment category saw sales rising 27 percent from the third quarter to 6,700 units, but the figure was 37 percent lower year-on-year.

    “Local demand remains steady, particularly for affordable units. Developers have started focusing on the suburbs and surrounding provinces,” the report said.

    Savills forecasts that average asking prices, which have increased 4 percent per annum over the last five years, is set to continue rising thanks to infrastructure upgrades, including two metro sections and ring roads.

    This year, around 25,000 units are set to enter the market, most of them Grade B. Fifty-seven percent of the new supply will be in the districts of South Tu Liem and North Tu Liem.

    The hotel category, which suffered the biggest Covid-19 damage as international arrivals plunged, saw occupancy recovering by 12 percentage points quarter-on-quarter to 33 percent, against 75 percent in the last quarter of 2019.

    Do Thu Hang, senior director of advisory services at Savills Hanoi, said many hotels downtown have been successful in attracting more domestic customers as the number of foreign tourists dropped.

    As Hanoi expects to receive 11-15 million domestic tourists this year, compared to 8 million last year, it is likely that hotels will continue to focus on the domestic segment as the resumption of regular international routes is uncertain, she added.

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  • CapitaLand income tumbles as tenants granted rent waivers

    CapitaLand income tumbles as tenants granted rent waivers

    Property giant CapitaLand said it will further waive and potentially defer rent for qualifying small and medium-sized enterprise (SME) tenants, though this will lead to an “adverse impact” on its earnings this year.

    The move is in accordance with the latest Covid-19 (Temporary Measures) (Amendment) Bill in Singapore, which requires landlords to provide SME tenants with additional rental relief amid the pandemic.

    The timing and payment of the rental rebate and any deferral are dependent on the authorities’ assessment of the eligibility of the group’s SME tenants, said CapitaLand in a statement on Monday (June 8).

    CapitaLand group chief financial officer Andrew Lim noted that the financial strain from the Bill “remains high”, despite assistance to defray the group’s ongoing operating costs through measures such as the Jobs Support Scheme and other specific measures for Singapore real estate investment trusts (Reits).

    “The financial strain that the measures mandated by the Act will place on the group remains high and will have an adverse impact on CapitaLand’s financial performance this year. We, therefore, maintain our conviction that the impact of the regulatory intervention be applied objectively, transparently and proportionally, as a shared responsibility across all stakeholders, so that the commercial real estate ecosystem can continue to be competitive locally and internationally after the crisis,” he added.

    Under the Government’s new rental relief framework, SMEs that have seen a significant drop in their average monthly revenues will receive an additional two months’ waiver of base rental for qualifying commercial properties, and an additional one month’s waiver of base rental for industrial and office properties.

    These additional rental waivers will be borne by the landlord, and be applied to June and July 2020 for SMEs in qualifying commercial properties, and May 2020 for SMEs in industrial/office properties, as long as their leases or licenses were in force on April 1.

    Before the Bill was passed, CapitaLand said it had already provided some level of rental relief and committed to pass on any government property tax rebates and cash grants to eligible tenants when informed.

    CapitaLand Mall Trust has committed a rental relief package of approximately $114 million, which translated into rental waivers in April and May for almost all its shopping mall tenants, inclusive of the value of property tax rebates

    Additional rental waiver was granted from March 27 to 31 for tenants ordered to close their premises since March 27. Some tenants were also granted a waiver on their turnover rent and were permitted to use the one-month security deposit to offset their rents in March, said the group.

    Inclusive of the Government’s property tax rebate and additional rental assistance, Ascendas Reit – which is under the CapitaLand group – had waived two months’ rent (from April to May) for retail and food and beverage tenants within individual buildings and amenity centres in its portfolio.

    CapitaLand Commercial Trust also extended rental relief to retail, F&B and services tenants whose businesses have been hit, on top of passing down the applicable property tax rebate to eligible tenants.

    “CapitaLand remains committed to working with our tenants through these trying times. It is in our interest to see our tenants ride through this with us. We are all in this together because everyone in the ecosystem has been impacted,” said Mr Lim.

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  • The Starhill reveals high-end tenants ahead of reopening early next year

    The Starhill reveals high-end tenants ahead of reopening early next year

    The iconic Starhill Gallery, which is part of a portfolio of retail assets owned by Singapore-based Starhill Global Real Estate Investment Trust (SGREIT) will undergo a transformation and revealed as The Starhill – Home of the Tastemakers in 2021.

    The mall, the most luxury retail establishment in the Bukit Bintang shopping district was developed by YTL Corp Bhd more than two decades ago.

    It opened in 1996 and houses more than 100 renowned luxury timepiece and jewellery brands, as well as other contemporary luxury labels.

    The mall was renovated in 2005, with renowned American architect David Rockwell at the helm of the project, which resulted in its current glass dome-like façade.

    YTL Land & Development Bhd vice president Joseph Yeoh said the mall will be partially closed (from October this year) for renovation with some brands continuing to operate.

    Yeoh said, the completion of phase one renovation is scheduled for the second quarter of 2020 in tandem with the relaunch of Shook!, Lu Yu Tea House and Jogoya.

    The soft opening of new stores and other food and beverage outlets is scheduled in the last quarter of 2020.

    Hospitality and retail experience under one roof

    Yeoh said the mall, after undergoing the transformation will redefine Kuala Lumpur’s shopping scene in a new concept that infuses hospitality into the retail experience.

    The mall, which sits directly opposite Pavilion KL, is connected to YTL’s five-star JW Marriott Kuala Lumpur hotel by a “Time Tunnel”. The link bridge also connects to YTL’s The Ritz-Carlton Kuala Lumpur.

    Yeoh said, with Kuala Lumpur remaining among the top five most popular tourist destinations in the Asia Pacific region alongside Tokyo, Seoul, Bangkok and Singapore based on Mastercard Destination Index 2019, it is crucial for The Starhill to optimize the cross cultivation of experiences between the retail and hospitality floors to offer unique shopping offerings for hotel guests from the two luxury hotels.

    Key to the refurbishment is to improve spatial layout, circulation and overall shopping experience; all interior common areas will be fully refreshed.

    A new double-volume entrance atrium will feature a lush green wall with multiple LED screens projecting brand videos of The Starhill and tenants to welcome all visitors.

    The central atrium will also be overhauled to include a new connecting bridge plying across the sun-lit atrium and cantilevered balconies designed as pop-up space.

    The Bukit Bintang facade will be given a facelift with new LED screens and a new café terrace on level one overlooking the new piazza.

    Yeoh said, the concept of The Starhill reinforces the group’s positioning as the place to be in Bukit Bintang.

    “The Starhill bucks the city’s cookie-cutter mall trend, going boutique-sized at 300,000 square feet of retail space to cultivate a more personalised retail ambience which is warm yet discreet when others have gone mega with an anodyne take on the shopping experience. Today, discerning shoppers seek special access and discoveries but most importantly, they want meaning, authenticity and connection and this is what we set out to achieve in The

    Starhill,” he said.

    YTL has partnered with top consultants from the region.

    Yeoh said, the consortium comprising Cistri (Singapore), Husband Retail Consultant (Hong Kong), Kokai Studio (Shanghai) and Eight Partnership (Hong Kong) – expert retail, design and branding consultants have meticulously studied the fluid landscape and identified transformative, game-changing strategies for The Starhill over the last two years.

    “With fast-changing values and consumption behavior among savvy and socially-connected consumers, the transformation to become The Starhill is in line with the need for retail malls to constantly evolve and differentiate to stay at the forefront of the changing retail landscape,” said Yeoh.

    More luxury rooms after the transformation

    The JW Marriott Kuala Lumpur will add 162 rooms to its current inventory on the upper floors of The Starhill.

    The Starhill, facing Jalan Gading and Jalan Bukit Bintang, will be distinguished by four floors of experiential retail space and three more floors of hotel rooms creatively converted from former retail space in the upper levels of the mall.

    Offering new and stylish accommodation, the new extension will be seamlessly integrated with the lower retail space in one vertical seven-floor development – a first in Asia that truly breaks down the boundary between retail and hospitality.

    Combining JW Marriott Kuala Lumpur and The Ritz-Carlton, Kuala Lumpur, there will be over 1,100 rooms seamlessly connected to The Starhill in two year’s time contributing excellent footfall to the retail floors, said Yeoh.

    The Starhill, coupled with the new hotel rooms, will officially launch in 2021.

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  • Singapore retailers call for ‘unprecedented rental relief’

    Singapore retailers call for ‘unprecedented rental relief’

    “Unprecedented rental relief measures” are needed from landlords to help retailers overcome the coronavirus crisis, according to the Singapore Retailers Association.  In an open letter to landlords, the association has urged landlords to implement a rental payment structure for six months capped at no more than 15 percent gross turnover or a 50-per-cent base rent reduction, whichever is lower. It also asks landlords to allow retail businesses who cannot sustain their businesses to exit before their lease expiration without losing security deposits or risking punitive legal action.

    “We fully realize and appreciate that both mall operators and tenants have been working very hard over the past two months to minimize the business losses from the drastic drop in footfalls,” read the letter signed by Singapore Retailers Association president R Dhinakaran, on behalf of its 400 members.

    “However with the government advice of safe distancing and stay at home (heading to malls for essentials like food only) … the sales of the majority of retail stores will be equivalent to zero sales, similar to a lockdown situation.”

    The letter asks landlords to exercise the requested measures to avoid massive permanent store closures and loss of jobs within the next three months.

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  • Dalian Wanda to open 17 malls this month

    Dalian Wanda to open 17 malls this month

    Chinese real estate developer Dalian Wanda Group will reportedly open 17 shopping centres this month.

    The group recently opened its 300th plaza in Hubei province, a 105,000sqm shopping centre based in Xianning – the first enclosed mall in the city – including a 275m indoor shopping street and an Imax theatre, as well as hosting 200 retailers.

    Wanda is poised to open four new plazas on December 20, followed by three on December 28 and 31. The group intends to operate 323 plazas in total by the end of the year, the majority of new locations in low-tier cities.

    The group has opened centres in 188 cities in 30 provinces nationwide.

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