Funky new shopping centres give old suburban malls a run for their money

Old players fear losing shoppers.

Older suburban malls are up against stiff competition as new shopping centres launch in non-central regions.

According to DTZ, most of the upcoming supply in 2015 will be in the suburban areas, which will see some 836,000 sq ft of new retail space coming into the market.

Anticipated completions in the area include Waterway Point with 371,000 sq ft, as well as the asset enhancement initiatives (AEI) of Technopark@Chai Chee (230,000 sq ft), which are slated to complete by year-end.

“From 2015 to 2019, more than 4 million sq ft of retail space in the suburban areas will be released. With more retail options for consumers, malls in the suburban areas are expected to face greater competition,” said Dr Lee Nai Jia, DTZ’s Associate Director of Research.

“Consequently, older suburban malls in particular, will be inclined to reinvent and enhance their shopping experience in order to sustain rental values,” Lee added.

Tiong Bahru Plaza for instance, is currently undergoing a $90 million revamp to attract residents in the vicinity as well as a younger crowd. 

Scheduled to complete by 2016, the newly renovated mall will include a new playground and open terraces for events such as flea markets and music performances.