Newer strata malls fail to deliver

Singapore

MR TAN Meng Khiang invested in a 187 sq ft strata retail unit at mixed development One Dusun Residences a few years ago, thinking it would be a good Balestier neighbourhood mall for the nearby condos.

But the returns are not yet what he had hoped for, after its completion in 2016.

For now, he is getting a 1.6 per cent rental yield, rather than the four per cent he expected. He estimates that about 50 of 77 shops are occupied.

Investors in recently-built strata malls have so far seen lower-than-expected rents, occupancy and footfall, they and various experts told The Business Times.

Such strata malls saw brisk transactions earlier this decade as property investors here saw opportunity in various commerc…