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Commercial Retail Property

Discussion in 'A Singaporean's guide to Living In JB' started by snowbird, Oct 4, 2016.

  1. snowbird

    snowbird Alfrescian Old Timer

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    How is the commercial and retail property in JB doing?
    According to many property gurus, it is doing very well, all launches were sold out and many new ones coming into the market very soon and they expect the take up rate to be good.

    Commercial retail property are broadly divided into 2 main group - rows of storeys shop-houses in clusters and individual lots within a major shopping centre.
    Indeed, most of the shop-houses in the suburb are mostly sold out but are they fully occupied?

    shop4c.jpg
    shop2D.jpg

    The situation are mostly like the photographs, all sold but no occupancy.
    In many areas, even in popular ones like Sutera Utama, Bukit Indah, Tun Aminah, Tampoi, etc., the TO LET / FOR SALE banners had been hanging there for some 2 years already.

    Over in the shopping centres, the situation don't seems to be very good either.
    On weekdays, even those in the city areas like the new Komtar SC is extremely quiet, wonder how the shops can survive for long.
    The shopping crowd has not increase significantly but the shopping spaces had increased by few folds, it only results in retail cannibalism.
    And now, another big shopping centre had suddenly sprung up from the sea in Forest City.
    Good luck to all the retailers.
    komtar3a.jpg
    komtar2b.jpg
     
  2. rotikok

    rotikok Alfrescian Old Timer

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    I see many of this. You know Permas Mc Donald there...many shoplots right. Now you all see so robust...but it took almost 10 years to fill up those shops...was very very mati for many years. JB always like that, new one come, old one mati. I do not foresee population demogaphy can change so fast....many should be struggle. Actually very common la, all along always see those thing happen, doesnt mean the bubble or the iskandar going to hell liao. 没见过世面,什么都好大惊小怪。
     
  3. sgcount

    sgcount Alfrescian Old Timer

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    I show you a more modern version of empty shops. These pictures may have been posted before.

    [​IMG]

    [​IMG]

    How they survive I also dunno.... But somehow, they can. That's how Johor functions I suppose.
     
  4. Tekkun

    Tekkun Alfrescian Old Timer

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    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.
     
  5. Frodo

    Frodo Alfrescian Old Timer

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    In my opinion, generally Malaysians are tough and resilient people and survival instincts are good. Compared to Singaporeans who nowadays are pampered by our govt, not many are able to weather the storms of life, especially when some basic things like housing can be expensive.
     
  6. Tekkun

    Tekkun Alfrescian Old Timer

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    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.
     
  7. RedsYNWA

    RedsYNWA Alfrescian Old Timer

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    Bro Snowbird is probably the nicest forumer around. Day in day out, he posts articles ranging from Petronas, commercial, retail, Chinese developers, 1MDB, oil collapse, corruption, bankruptcy, high speed rail/RTS failures etc etc for fellow bros and sis to read.

    To summarise, to him, Malaysia is a goner and 100% negative news, so fellow Singaporeans please do not come to MY but to invest in SG instead.

    Where to find such kindhearted souls around these days? We really should treasure him.
     
  8. Tekkun

    Tekkun Alfrescian Old Timer

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    3x daily dose without fail and guarantee you won't lose money in Malaysia. :)
     
  9. cybermad

    cybermad Alfrescian Old Timer

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    Ya, give the man a Noble Prize ;)
     
  10. snowbird

    snowbird Alfrescian Old Timer

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    Slimy property salespeople will only tell you the good things, silent all the negative news and half truth on all others.
    If only other are also as truthful in sharing info there'll be lesser gullible people around.
    Actually all the things I posted are already public information but many are just unaware.
    People with more information on hand can make a more informed decision, don't you agree?
    I've never said anything bad about certain development or MY is a goner per se, just pointing out the flaws, hidden or otherwise, so that people are aware and can make a wiser choice, hope this is not a crime.
    But I must say, those with vested interest will not like what I posted because they are afraid such news may affect their investment prospect.
     
  11. snowbird

    snowbird Alfrescian Old Timer

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    So, in your opinion it is normal for shoplots to be left unoccupied for a long time, but for more than 2 years?
    It won't be easy for the shop owner, never mind that he has deep pockets, to continue paying the loan without any income from rental.
    So, those considering buy shoplots or commercial retail lots, please take note.
     
  12. Tekkun

    Tekkun Alfrescian Old Timer

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    Commercial property investments is very different from residentials. Firstly the entry cost is high. Commercial loans are also different from housing loans. Even the SPA is a private contract and not regulated by Housing Ministry.

    Commercial properties must look at location of the that unit in that development, the facing, local population that feed the activities of the shops, the roads, availability of car parks and also the affluence of the area. Many shops would get rented on the ground floor whereas 1st and 2nd floor no demand but you are paying for all 3 floors. You can consider EXTREMELY lucky if you can rent all 3 floors out within 2 years in a new development.
    I have one unit looking for tenant over last 4 months. Many enquiries from car repair to furniture including one today as a snooker center. Thanks but no thanks. :) Prefer to keep it empty.
     
  13. RedsYNWA

    RedsYNWA Alfrescian Old Timer

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    Based on what Bro Snowbird's truths, Petronas is now "cashless", so people should expect Petronas to do a Swiber anytime soon.
     
  14. Tekkun

    Tekkun Alfrescian Old Timer

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    It cost Petronas RM100 million to sponsor Mercedes F1 team each year, it is sure out of cash :D
     
  15. rotikok

    rotikok Alfrescian Old Timer

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    And asking to open 跑马机 or gambling gaming shops for upstair....quite often.
     
  16. Tekkun

    Tekkun Alfrescian Old Timer

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    KL area cannot ler. Too many raids.
     
  17. snowbird

    snowbird Alfrescian Old Timer

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    Hello, please don't anyhow put words into my mouth again.
    I had never said that Petronas IS NOW CASHLESS, but based on Petronas very own admission recently, they are extremely tight on cash flow.
    Which also means that if they don't revise their budgeting downwards quickly and get into the red, yes, they'll go broke in no time based on their high expenditure monthly.

    The oil giant had acknowledged that it was facing a cash-flow problem due to the prevailing low oil price environment, which necessitated its RM50bil cut in capital expenditure and operating expenditure from this year up until 2020.

    Go read this : http://www.thestar.com.my/business/...ronas-will-continue-to-review-its-strategies/

    And from that Fitch statement, they expect "Petronas to go free-cash-flow negative this financial year and next after meeting their capex and dividend requirements".
    That was supposed to be an expect's point of view and not any stupid Tom, Dick or Harry but from the reputable Fitch.
    You need not believe a word here but please don't discount the reliability of the news.
    And also no personal attack but instead substantiate whatever you want to say and contradict me and not say something for the sake of saying.

    Go read this to update yourself : http://jakartaglobe.beritasatu.com/i...no-rush-start/
     
  18. rotikok

    rotikok Alfrescian Old Timer

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    Ohhhh you mean not cashless now, but a year or two negative free cash flow, they will be cashless. Is that how you understand it?
     
  19. Tekkun

    Tekkun Alfrescian Old Timer

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    "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?"
     
  20. xebay11

    xebay11 Alfrescian Old Timer

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    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.
     

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