With the arrival of 4.5 million tourists with RM1.1 billion in tourist receipts and the return of shoppers to shopping malls expected sales will improve in the second half of 2022, according to a to a property report.
“It said that the influx of international tourists will bode well for the retail market, sparking interest by landowners and investors at major tourist attractions to ride on the new wave,” in a property report entitled “KUALA LUMPUR Q2 2022 Uneven recovery following supply chain disruptions, global inflation and rising interest rate by Nawawi Tie Leung Property Consultants Sdn Bhd
The report said that with the ever-increasing supply of new retail space, developers need to introduce innovative lifestyle concepts integrating indoor and outdoor experiences to attract retailers and shoppers. “As for the older malls, we expect many of them to reposition themselves to remain relevant,” it said
On the office sector, the report said that the improvement in leasing enquiries and activities indicated a return of consumer confidence as more companies returned to the office. “New demand for space in the city center ranges from 10,000 sq ft to 40,000 sq ft,” it said
It said that existing occupiers continue to evaluate the right kind of hybrid work model that best suits their organisation, thus driving more leasing activities in the market. “Hence, we expect there will be more enquiries and viewings,” it said.
It said that with the current rise in inflation which may continue in the second half of the year, occupiers are expected to be cautious in spending and take a ‘wait and see’ approach with the general uncertainty in the market.