Two new malls to open in Kuala Lumpur this year

These will yield over 1m sq ft of new retail space.

The Kuala Lumpur City Centre prime retail market outlook remains optimistic, according to a JLL report. Prime malls are expected to continue to diversify offerings with the introduction of new local and international brands as well as landlords’ asset enhancement strategies to elevate overall customer experience.

“Two new shopping malls, totalling 1.16 million sq ft, are set to open in the City Centre submarket in 2025 and are likely to attract retailer expansion. No new supply is anticipated for 2026 onwards, likely driving rents upward as supply tightens in this submarket,” the report said.

Here’s more from JLL:

Malaysia’s retail sector showed resilience in Q3 2024 (latest available), with sales growth of 3.8% y-o-y, driven by the mini-market and convenience store subsector. Higher tourism spending and increased private consumption also contributed to this result.

F&B retailers sought expansion space. Healthy take-up seen in the Suburban submarket due to its growing population and availability of space in malls that recently commenced operations. Notable Chinese brands, such as ChaPanda and Bestore, entered the market.

One new mall opens in Selayang and Sunway Pyramid’s expansion project completes

The quarter saw the debut of 168 Park Mall, part of a mixed-use development revitalising the former Selayang Star City site. The 2-storey neighbourhood mall featured 235,500 sq ft of NLA, with anchor tenants such as Village Grocer, MR DIY and Anytime Fitness.

Sunway Pyramid expanded with the completion of its new 300,000 sq ft OASIS wing, enhancing its offerings. The 4-floor addition housed over 100 stores including MUJI’s largest store in Malaysia, Jaya Grocer, H&M Home, Sports Direct, Caudalie, AKEMI and Urban Revivo.

Overall rents increase moderately

Rents increased at a moderate pace across both sub-markets, supported by positive tenant sales, overall increased leasing demand and improved occupancy of quality malls. Yields decreased marginally as capital values outpaced rent growth.

No notable investment deals were recorded. However, the quarter marked the completion of previous transactions: KIP REIT’s acquisition of DPulze Shopping Centre for RM320 million and Sunway REIT’s RM215 million purchase of 163 Retail Park, rebranded as Sunway 163 Mall.