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Perth Retail Market
The retail environment for the
resource-based economy remains
challenging, on the back of lower
than national average retail turnover,
subdued wages and employment
growth as well as a softening housing
market
(23)
. However, landlords of city
centre retail spaces are taking this
opportunity to commit to upgrading
works
(24)
. Raine Square and Forrest
Chase, located in Murray Street Mall
alongside SGREIT’s Plaza Arcade, are
currently being refurbished.
MALAYSIA MARKET
In the first quarter of 2017, Malaysia’s
economy remained resilient, recording
a growth of 5.6% as the economy
remains supported by the services,
manufacturing and agriculture
sectors, while private consumption
was one of the main catalysts for
growth
(25)
. For the whole of 2017, the
Malaysian economy is expected to
remain on a steady growth path
and achieve 4.3% to 4.8% growth
(26)
.
In Kuala Lumpur, the second phase
of the Sungai Buloh-Kajang MRT
line commenced in July 2017 and
it is expected to serve 400,000
commuters daily
(27)
. An entrance to
the new Bukit Bintang MRT station is
located in front of Lot 10, connecting
commuters to the existing Bukit
Bintang monorail station.
Malaysia Retail Market
Meanwhile, retail sales for the first
quarter of 2017 have yet to recover
from the impact of Goods & Services
Tax and fell further by 1.2% yoy
(28)
.
While retail sales rose by 7.6% in the
second quarter of 2017
(25)
, trading
conditions (including higher costs of
goods and rising operating costs)
remain tough for retailers and
consumer sentiments remain
cautious. In the fourth quarter of 2016,
2.03 million sq ft of new retail space
was completed
(29)
. Construction
activity is robust with about
16.6 million sq ft of retail space
in development and due to be
completed by 2019
(29)
and the retail
sector in Klang Valley is expected to
be competitive in the next few years,
although the majority of future mall
supply is in the fringe of Kuala Lumpur.
Malaysia Tourism Market
In 2016, international visitor arrivals to
Malaysia increased 4% to 26.8 million
while tourism receipts rose 19% to
RM82.1 billion
(30)
, as the improvement
is attributed to improved flight
accessibility and currency depreciation.
Tourism Malaysia is targeting
31.8 million in tourist arrivals with
tourism receipts of RM118 billion
for 2017
(30)
.
CHINA RETAIL MARKET
Based on preliminary readings,
China’s GDP growth was maintained
at 6.9% in the second quarter of
2017
(31)
, an uptick from the 6.7%
growth in the previous corresponding
period. In the first half of 2017,
nationwide retail sales grew 10.3%
(31)
while retail sales in Chengdu grew
11.2%
(32)
. Chengdu’s retail environment
remains competitive as the city is
among the top five global markets
for shopping centre completions in
2016 with over 530,000 square metres
of retail space completed in 2016
(33)
,
and another 330,000 square metres
of new space in the first quarter
of 2017
(34)
.
JAPAN RETAIL MARKET
Japan’s gross domestic product
grew by an annualised 1%, according
to revised figures
(35)
. For the month of
June 2017, retail sales grew 2.2% yoy
(35)
,
maintaining a steady positive trend
for the second quarter of 2017. After
mild softness, first floor rents in
Tokyo have increased, continuing
a stable trend despite short-term
fluctuations
(36)
. While investment
volumes decreased significantly in
2016 due to a lack of opportunities,
capitalisation rates continued
to compress in selected areas,
indicating that demand for prime
retail assets remains sound
(36)
.
Notes:
(1)
Ministry of Trade and Industry Singapore, MTI Narrows
2017 GDP Growth Forecast to “2.0 to 3.0 Per Cent”,
11 August 2017
(2)
Singapore Tourism Board, International Visitor Arrivals
(3)
Singapore Tourism Board, Tourism Sector
Performance, Q1 2017 Report
(4)
Immigration & Checkpoints Authority, Extension of
Validity of Multiple Journey Visa for Nationals of the
People’s Republic of China, 15 May 2015
(5)
Singapore Tourism Board, Year in Review,
14 February 2017
(6)
Singapore Tourism Board, CAG, SIA and STB sign
new joint partnership, 17 April 2017
(7)
Singapore Tourism Board, Singapore Tourism Board
and The Walt Disney Company Southeast Asia to
Form Multi-Year Collaboration, 13 April 2017
(8)
Singapore Tourism Board, Tourism Industry
Conference 2016 – Speech by Mr S Iswaran, Minister
for Trade and Industry, 26 April 2016
(9)
Singapore Tourism Board, Annual Tourism Statistics
2015, 6 March 2017
(10)
Brandz™/Millward Brown Top 100 Most Valuable
Global Brands 2017
(11)
International Monetary Fund, World Economic
Outlook, April 2017
(12)
CBRE, How Global is the Business of Retail, 2017
(13)
Urban Redevelopment Authority Singapore,
Release of 2nd Quarter 2017 Real Estate Estimates,
28 July 2017
(14)
CBRE MarketView Singapore, Q1 2017
(15)
Department of Statistics Singapore, Retail Sales
Index, Food & Beverage Services Index, 11 August 2017
(16)
CBRE MarketView Singapore, Q2 2017
(17)
Jones Lang LaSalle News Flash, URA 2Q17 Real Estate
Statistics, 28 July 2017
(18)
Reserve Bank of Australia, Statement by Philip Lowe,
Governor: Monetary Policy Decision, 1 August 2017
(19)
Australia Bureau of Statistics
(20)
CBRE Research, Asia Pacific Real Estate Market
Outlook, Australia, 2017
(21)
CBRE MarketView, Australia Retail, Q2 2017
(22)
Colliers, Retail, Research & Forecast Report, Australia,
First Half 2017
(23)
Jones Lang LaSalle, Perth Retail Market Overview,
Q2 2017
(24)
ABC News, Half-full or half-empty? What’s
Happening to Perth’s Empty Shopfronts, 9 July 2017
(25)
Department of Statistics Malaysia
(26)
Bank Negara Malaysia, Outlook and Policy in 2017
(27)
Mass Rapid Transit Corporation
(28)
The Edge Malaysia, Malaysia’s Retail Industry
Records -1.2% Sales Growth in 1Q on Weak CNY Sales,
8 June 2017
(29)
CBRE Research, Asia Pacific Real Estate
Market Outlook, Malaysia 2017
(30)
Tourism Malaysia
(31)
National Bureau Statistics of China
(32)
Chengdu Bureau of Statistics
(33)
CBRE, Global Shopping Centre Development,
April 2017
(34)
CBRE MarketView China, Q2 2017
(35)
Ministry of Economy, Trade and Industry, Japan
(36)
Savills, Spotlight, Japan Retail, April 2017
MARKET
OVERVIEW
52
STARHILL GLOBAL REIT ANNUAL REPORT FY 2016/17