I mean, at least housing properties have this ever present cultural pressure to keep fueling it for some time. Bussiness however are more realistic. If the location got too expensive they will simply close or move. Maybe even just do their bussines 100% online.
But all these are just my guess. Outsiders like me have no chance to see what’s behind the shop front, and bussiness, especially one in crisis, will always keep up a business as usual everything is fine façade.
It’s hard to gauge the thing for sure, but it also depend on how much business that location will bring. I remember hearing the shoplot in Kota Syahbandar in Melaka costing north of rm1 million per unit(3 storey) after they’ve done building the area and i first thought it will die off, but right now it’s one of the busiest place in Melaka, replacing Melaka Raya.
The rental is high, but the potential of making a load of money is higher so people willing to take the risk.
Melaka💀
Haven’t been there for years now. So they finally managed to complete that reclaimed land construction eh?
Still, I would look at that development with suspicion because it is funded mostly by PRC financiers desperate to get their money out from their country.
And knowing Melaka income level exactly how many people willing to spend their money there is questionable. But that had never stopped anyone, like Hatten😅 (Heard that their serviced apartment are in deep shit?).
Maybe it is like you said, people taking risk to make money. Probably the bussiness are not making any real profits just yet and still burning through their cash reserves.
Hoho, you’ve underestimate the middle income group of melaka. The place is also frequent by people from KL/Selangor, Singapore, and mostly China, but normally it’s full of young people. It’s stayed up for quite some time now, so i doubt it will just crash, but if it does it’s because Melaka is in deep shit.
As for business owner, a lot of them likely not coming from locally but other state, and even other country. That’s normal i guess, attract foreign investment and make more job for local
Donno leh, last time I lived there 10 years ago even Melaka Raya was too much for my middle income ass. I go there window shopping only. Probably mostly children of upper middle class Melaka people + out of state tourists?
Plus, afaik anyway, Malaccans don’t like going to Melaka Raya area. Hot AF. Traffic is shit. Aeon bandaraya is bettter.
But still, I really hope the state gov stop being so crazy. If not one of these days Melaka will end up losing its UNESCO status then everybody dies.